What is the Process for Offering, Sale and Issuance of Securities?

All crowdfunding transactions must be facilitated through a Registered Intermediary such as the participating crowdfunding platforms, a platform for U.S. investors operating under SEC & FINRA guidelines. The following 10 steps describe of process of making an investment through the the participating crowdfunding platforms:

1. You will register as an investor, providing the participating crowdfunding platforms with contact information, your occupation and the name of your primary financial institution (bank or broker-dealer).

2. You will create an account after reading and acknowledging investor disclosure information.

3. You will be required to submit an investor questionnaire affirming your understanding of the risks and process of investing through the participating crowdfunding platforms. You should commit ample time to reading and understanding the investor education section prior to reviewing current investment opportunities listed on this site.

4. After completing the investor education materials, you will affirm that you have read and understand the required investment disclosures, including information on reps, warranties and indemnifications.

5. After establishing your account and completing the investor education questionnaire, you will then be able to see available offerings on the participating crowdfunding platforms. For each currently available offering, you will be able to access the company’s description and business plan, including the following information:

a. Total funds the company is seeking to raise
b. Total number of shares offered
c. Estimated valuation of outstanding shares after offering
d. Closing date of the offering
e. Shares sold to date
f. Registered investors
g. Participating investors

You will have an opportunity to post messages and discuss the company’s business strategy in an online community of potential investors prior to placing an order

6. To place an order, you will first determine your maximum allowable amount. You will provide certain financial information and your year-to-date equity crowdfunding investments. After your maximum investable amount is established, you will enter the actual number of shares that you wish to purchase.

7. You will finalize an order by contacting a third party provider to submit payment.

8. You will receive order information subject to final sale. It will be your responsibility to cancel an order (if appropriate) no later than 48 hours prior to the designated closing date. You will receive final order confirmation from the participating crowdfunding platforms on the closing date.

9. You will have continuing access to discussion boards and alerts on topics such as new investor education content.

10. If an issuer does not complete an offering on a specified date, each investor will receive notification of the cancellation within five business days. The notification must disclose the reason for the cancellation and the refund amount that the investor is expected to receive.

11. Securities issued in a transaction via a crowdfunding platform may not be transferred during a one-year period beginning when the securities were issued, unless the securities are transferred to the issuer of the securities, to an accredited investor, as part of an IPO, or to a family member of the purchaser. This would include a trust controlled by the purchaser, a trust created for the benefit of a member of the family of the purchaser, or in connection with the death or divorce of a purchaser.


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