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Tag Archives: Texas Crowdfunding Issuer Rules

Texas Crowdfunding Issuer (TCI) Rules for Private Placement Memorandum (PPM) Offerings

11 Nov

Texas Crowdfunding Issuer Rules

Texas Approves Equity Crowdfunding Exemption for Non-Accredited Investors

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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