A public securities offering by a promotional or development stage company may be disallowed by the Securities Commissioner if the promoter’s equity investment is less than:

1. A. Ten percent (10%) of the first one million ($1,000,000.00) dollars of the aggregate public offering; and
2. B. Seven percent (7%) of the next five hundred thousand ($500,000.00) dollars of the aggregate public offering; and
3. C. Five percent (5%) of the next five hundred thousand ($500,000.00) dollars of the aggregate public offering; and
4. D. Two and one-half percent (2¹⁄₂ %) of the balance over two million ($2,000,000.00) dollars, which may include items submitted by the promoter to meet this requirement whose value has been accepted by the Securities Commissioner or his designee.

HISTORY: Added by State Register Volume 30, Issue No. 6, eff June 23, 2006.