Re(1): Rule 504 Posted on July 7, 2011 at 03:09:48 PM by John Cones
First, Reg. D, Rule 504 is limited to offerings up to $1,000,000. So that eliminates a lot of film projects. Second, an issuer of securities must comply with both the federal and state exemptions from registration when conducting an exempt offering. The states do not offer exemptions that are compatible with Rule 504, so it cannot be used except in conjunction with the Model Accredited Investor Exemption (state exemption) or the Small Corporate Offering Registration (SCOR). The MAIE limits sales to accredited investors only but allows some advertising. SCOR is a small public offering requiring registration at the state level and reliance on Rule 504 at the federal level. So keep reading.