Texas Crowdfunding Issuer Rules
Here are the Texas Crowdfunding Issuer Rules that detail what it takes to issue a Private Placement Memorandum (PPM) for Equity Crowdfunding Offers in the state of Texas:
(b) Issuer.
(1) The issuer is a Texas entity that has filed a certificate of formation with the Texas Secretary of State and is authorized to do business in Texas and:
(A) At least 80% of the issuer’s gross revenues during its most recent fiscal year prior to the offering are derived from the operation of a business in Texas;
(B) At least 80% of the issuer’s assets at the end of its most recent semiannual period prior to the offering are located in Texas;
(C) The issuer will use at least 80% of the net proceeds of this offering in connection with the operation of its business within Texas; and
(D) The principal office of the issuer is located in Texas.
(2) The issuer is not, either before or because of the offering:
(A) A company that engaged or proposes to engage in the business of investing, reinvesting, owning, holding, or trading in securities;
(B) Subject to the reporting requirements of the Securities and Exchange Act of 1934, Section 13or Section 15(d), 15 U.S.C. §78m and §78o(d); or
(C) a company that has not yet defined its business operations, has no business plan, has no stated investment goal for the funds being raised, or that plans to engage in a merger or acquisition with an unspecified business entity.
Click here to see the Texas Crowdfunding Issuer (TCI) Disclosure Requirements.
How to Become a Texas Crowdfunding Issuer (TCI):
To get conduct a Texas equity crowdfunding campaign, Texans need to fill out a Texas Crowdfunding Issuer (TCI) Exemption Notice Form 113.17 and file it with the Texas State Securities Board.
How to Start a Texas Crowdfunding Portal (TCP):
To launch a Texas crowdfunding portal, Texans need to fill out a Texas Crowdfunding Portal (TCP) Registration Form 113.15 and file it with the Texas State Securities Board.
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