3 AAC 08.170 - Promoters' equity investment
(a) Except as
described in (c) of this section, the administrator will, in the
administrator's discretion, disallow a public securities offering by a
promotional or development stage company if, for an aggregate public offering
(1) of $1,000,000 or less, the promoters'
equity investment is less than 10 percent of that amount;
(2) greater than $1,000,000 and no more than
$1,500,000, the promoters' equity investment is less than the sum of $100,000
and seven percent of the amount by which the offering exceeds
$1,000,000;
(3) greater than
$1,500,000 and no more than $2,000,000, the promoters' equity investment is
less than the sum of $135,000 and five percent of the amount by which the
offering exceeds $1,500,000; and
(4) greater than $2,000,000, the promoters'
equity investment is less than the sum of $160,000 and two and one-half percent
of the amount by which the offering exceeds $2,000,000.
(b) For purposes of this section, the
promoters' equity investment consists of the total of cash, property, other
tangible assets, and intangible assets that the promoters contribute to the
issuer, if the administrator accepts the value of the property, other tangible
assets, and intangible assets. The promoters' equity investment may be adjusted
by the issuer's earned surplus immediately before the public
offering.
(c) If the promoters'
equity investment consists of tangible assets of one-half of the amount
required by (a) of this section, the administrator will consider the promoters'
equity investment to be acceptable if all promotional shares are deposited in
escrow in accordance with
3
AAC 08.180 -
3
AAC 08.186.
Notes
Authority:AS 45.55.120
AS 45.55.950
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