And The Beat Goes On – Tennessee Adopts Crowdfunding
While the SEC (after 700 days) has not adopted its final equity crowdfunding regulations, Tennessee’s entrepreneurial efforts have moved forward. Tennessee’s new crowdfunding law known as “Invest Tennessee Exemption” became effective on January 1, 2015. The new law allows Tennessee-based companies to engage in intrastate crowdfunding. The Invest Tennessee Exemption requires that the offering comply with the federal intrastate offering exemption provided by Section 3(a)(11) of the Securities Act of 1933, as amended.
Section 3(a)(11) allows companies domiciled and operating within a particular state to sell securities to residents of that state without registration. The Invest Tennessee Exemption allows a company to:
- Raise up to $1,000,000 in a 12 month period,
- Accept subscriptions of up to $10,000 from unaccredited investors, and
- Offer its securities for sale to Tennessee residents using general solicitation and advertising.
Unlike many states adopting intrastate crowdfunding legislation, Tennessee does not require a state filing for offerings made pursuant to its Invest Tennessee Exemption.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.