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Accredited Investor
This exemption allows an issuer to raise capital through sales to accredited investors, as defined by Regulation D, Rule 501 of the Securities Act of 1933, provided all sales are made to accredited investors and certain other conditions are met, some of which are listed below in summary form:
  • Purchase is being made for investment and not for resale.
  • Not available if the issuer is in the development stage and either has no specific business plan or purpose, or has indicated that their business plan is to engage in a merger or acquisition with an unidentified company or companies.
  • A general announcement of the proposed offering may be made and disseminated if certain criteria are met.
  • No telephone solicitation is permitted, unless, before placing the call, the issuer reasonably believes that the prospective purchaser is an accredited investor.

Specifics
  • Citation: K.A.R. 81-5-13
  • Filing Requirement: Within 15 days after the first sale in Kansas, the issuer shall file a notice of transaction on Form D and a copy of the general announcement, if applicable.
  • Filing Fee: $250 (See K.A.R. 81-5-8)