Reg D 506 (C) – Overview
Companies will have flexibility for what type of information they wish to disclose to the general public. Although the businesses don’t will need to register with the SEC, they need to submit a Form D, including information concerning the business’s offering, promotors, the companies themselves, and some additional info about the offerings. Several of the blockchain businesses and startups that I’ve spoken with seem to believe that the token they are creating is a utility token.
Reg D 506 ( C ) Secrets
The issuer can communicate directly with investors about the details of the offering and how they can get it as well, so long as they identify themselves as the issuer in all communications. Issuers can invite Investors with a very simple email, a fully integrated private label solution or only about anything between. By including a questionnaire on the opening page of the site, the issuer can ascertain the content that might be appropriate for a distinct possible investor to access. If it has not yet filed a tax return, and is not required to file a tax return before the end of the offering, then the tax return info doesn’t need to be provided. It also needs to disclose their website address and the link to where investors can find the issuer’s annual report, and the date the report will be available. It can also solicit public.