HENRY FORD JOBS

For additional information please visit: http://www.genesiscorporateadvisors.com. The Small Corporate Registration was designed specifically for small businesses. It allows small companies to raise equity or debt capital publicly without having to register with Securities and Exchange Commission. It is designed to streamline the state review process by using standardized forms and reviews. Each states separately reviews the company’s filings and issues a permit allowing general solicitation to the public in that state.

Permits are generally issue within 30 days ( in Nevada) or it may take up six months (as is the case in California) depending on each state’s regulatory standard.

1. This form of registration is available to small securities issuers pursuant to Regulation D, Rule 504, of the Securities and exchange Act of 1933, as amended.
2. It allows small companies to be able to raise up to one million dollars in equity financing with certain limitations and guidelines. This program is known as Registration By Exemption because it is basically a hybrid between a public offering and a private placement. This type of offering is often referred to as DPO, or Direct Public Offering because the stock can be sold to the public without the use of an underwriter or agent (Broker). These securities can also be sold to the public and be resold into established secondary market.

Under an SCOR offering a company can advertise for investors, and sell securities to anybody who expresses an interest, this provides a great advantage over a 504 offering where the offering is restricted to only 35 non-accredited investors. Being able to list the securities on the Nasdaq Bulletin Board or the Pink Sheets is another positive for DPO’s because it makes the investment more liquid and appealing to investors.

You can anticipate receiving comments from examiners in many of the states in which registration is sought, depending on the regulatory approach taken by the state, those comments may be limited to request for disclosure of additional information or may require certain terms of the offering to be modified with the states fairness laws.

Failure to resolve outstanding comments can lead to denial of application for registration by the state. The states may make applicable substantive fairness standard as an appendix to the filing instructions or make use other means to make the available.