Useful information for distribution in the US under Reg D 506c and 506d
With a Reg D 506c offering, the company can raise an unlimited amount of capital, but only from accredited investors.
- It is allowed for the issuing companies to promote and advertise their offerings far and wide with few limitations.
- The issuer companies have to take steps to verify that the investors are actually accredited.
- Although the companies don’t need to register with the SEC, they have to file a Form D, which includes information about the company’s offering, promotors, the companies themselves, and some further information about the offerings.
With a Reg D 506b offering, the company can raise an unlimited amount of capital, primarily from accredited investors.
- The company is limited to marketing its offering to people that it already knows are accredited investors. So general advertising and promotion is not allowed.
- Investors are allowed to self-state that they are accredited.
- Up to 35 non-accredited investors are allowed with certain steps taken to ensure they are aware of the risks they are taking by investing.
- Although the companies don’t need to register with the SEC, they have to file a Form D, which includes information about the company’s offering, promotors, the companies themselves, and some further information about the offerings.
You will also find relevant information for distribution of securities in the main jurisdictions in the document below from page 13 to 17.