"Know the capital structure before investing your capital"
Before any person invests in a company, they need to know what is the stated "Capitalization" of the company that they are being asked to invest in. This information should always be available in the form of a statement of financial position that clearly defines the capital structure and the rights of each class of shareholder. As the current crop of intrastate offerings are possible under Rule 147, there is no reason for any ECF funded company to deem their ECF issued securities to be deemed "restricted" in the hands of any non related affiliate holder of such securities. Let them offer their ECF acquired shares for sale under Rule 144 and let broker free, P2P market forces provide the share price discovery.
TITLE II CROWDFUNDING SITES (A $20B capital market)
In general, do not appear to make this information available to a potential investor in offerings carried on their sites. The capital structure and the capitalization of any company seeking to raise capital must be disclosed at the very start of the investment process. This makes for a far more transparent disclosure doctrine.
TITLE III CROWDFUNDING SITES (A $2T capital market)
Reported by Forbes in July 2013 as being an brand new, untouched capital market with a resource of over US$2T, this is the (perceived) "Holy Grail" of the early stage company seeking expansion phase, Pre-Series A capital. The SEC is now in the process of preparing the Regulations that will govern the application/usage of Title III within a delivery system that removes the threat of investor fraud on the millions of non-accredited investors that own this US$2T capital resource in the US.
EZYXCHANGE CROWDUNDING SITE (Protecting $2T)
Mindful of the need to mitigate the threat of fraud on Title III investors, EzyXchange will at all times strive to ensure the highest possible standards of investor protection through a stringent disclosure process that will act as a "Fraud Mitigation Filter" process, overseen by the Exchanges Listing Sponsors, accounting professionals in public practice whose training includes audit backgrounds where the prevention of fraud through proper internal controls designed to provide readers of financial information an assurance that the numbers present a true and fair view.
DISCLOSURE, DISCLOSURE, DISCLOSURE
Spell out on Day One the capital structure of a company and "who owns what" one is well on the way to creating a transparent capital introduction template into an early stage company.
As we have already mentioned 2U, it costs nothing to start the EZYX-ECF process.
Simply email us your request to take the first free steps.
start @ ezxychange.com
We will then send you DOC-201 and let you start to understand how raising capital is a journey, not a sprint race.
(As most ECF Intermediary quite inappropriately imply that it is!).
RULE 501 (ACCREDITED) INVESTORS ONLY AT THIS TIME
Refer to "Pipeline" page herein. The offerings referred to thereon are made under Rule 504, of Regulation D and Title II and IV of the Jobs Act 2012. This means Rule 501 qualifying parties (accredited/sophisticated investors) may participate in these offerings from any location in (1) the USA and (2) any jurisdiction outside of the US where local securities legislation permits qualifying residents in those countries to participate.
When creating the core Monetized Capital Value (MCV) of an Equity Crowdfunded (ECF) company it should be structurally capitalized to enable the ECF company to seamlessly migrate from early stage through to eventual digital IPO, providing an exit strategy for all when any lock-up restrictions fall away.
MICRO-FARMING CAPITAL STRUCTURING
As a CO incorporated Domestic C Corporation, EZYX is required to (1) comply with Title 7 and 11 of the Colorado Revised Statutes (CRS), (2) the Securities Act 1933 and (3) the Securities Regulations 1934.
All proposed ECF Applicant Issuer client companies must be incorporated in the State of CO and be subject to same law as applies to EZYX.
As one of the top states for business in the US, CO offers an efficient and friendly business environment for owners of companies both within the State/US and from abroad. Indeed for non US companies, CO makes an excellent "offshore" center offering full access to and protection of US law in matters such as Intellectual Property, the primary asset of the emerging digital economy.
A US FEDERAL/STATE RULE UP TO $1M ALREADY EXISTS!
What better interstate and international capitalization disclosure and raising document than the NASAA Form U7 disclosure document? Already accepted by the securities Regulators in 43 of the States across the US under the various state SCOR regional securities issuance groupings, one is left wondering why Title III is even necessary when Rule 504, the (old) Reg A and the SCOR programs already provide an excellent and affordable intrastate - interstate disclosure process for the folks on Main St that both (1) Title III and (2) the current crop of interstate equity-crowdfunding laws cater to.
Ensure that the structure provides for the proper Monetization, Capitalization and Realization of the Commercialized Intellectual Property. This makes the entry of capital into a company as being one based solely on share pricing, not structuring or other unnecessarily complex legal toing and froing. Price discovery starts when realization on the secondary market starts.
The ECF campaign is capped at only $3,000. This is the cost of the standard Form U7 disclosure document that we prepare for you from information supplied to us by your accounting professional. We do require that you appoint your CPA or Attorney to act as your iiCAP Listing Sponsor. We can also assist you to prepare supporting documents should you wish. Once you have completed your suite of documents, you then simply file them in the cloud and get your DIY campaign under way. Something that we can also help you with should you wish as part of getting your book-building process under way.
Creating jobs, restoring whanau wealth and rebuilding rural communities for "Whanau on the Whenua"