Tips, Articles and News relating to accredited investors
Business Compliance Partners Summarizes the Finalized Net Worth Standard for Accredited Investors
View Original ArticleWed, 15 Feb 2012 00:08:06 -0800 The Securities and Exchange Commission (?SEC?) finalized its new ?net worth standard for accredited investors? rule, which will take effect on February 27, 2012, ending the regulatory limbo that existed after the enactment of the Dodd-Frank Act on July 21, 2010.The Act gave the SEC directives to implement regulations based on the guidelines and framework outlined in the Act. Two new provisions ...
Knick Exploration Inc. $501,000 Private placement to accredited investors
View Original ArticleTue, 21 Feb 2012 07:20:00 -0800 Val-D'Or, Quebec, February 21, 2012. Knick Exploration Inc. (TSX-V: KNX) is pleased to announce a proposed private placement of a maximumof up to 334 units at a price of $1,500 per unit for an aggregateamount ...
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Accredited Investors
Accredited Investors - Definition
Under SEC Regulation S, Companies seeking to raise capital can now use "General Solicitation/Advertising" to locate foreign accredited investors. In addition, companies can also utilize mailing lists and pay finder's fees to non-US non-broker dealers for introducing accredited investors. Companies can also utilize Reg D to offer a private placement offering of securities to U.S. accredited investors as well. By combining both a U.S. Private Placement Offering and a "foreign" Direct Public Offering, the company has a broader chance of raising the required capital they need from accredited investors.
The SEC designation for accredited investors or an entity meeting any of the criteria listed below. Certain restricted offerings, limited partnerships, and angel investor networks are open only to accredited investors.
Any natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his purchase exceeds $1,000,000 are considered accredited investors. Any natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year are considered accredited investors.
Any organization that was not formed for the purpose of acquiring the securities being sold, with total assets in excess of $5,000,000. And, any entity in which all of the equity owners are Accredited Investors. Opposite of non-accredited investors.
