Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 1 - Banking, Securities, Small Loans and Corporations
Chapter 08 - Securities
Article 2 - Registration and Notice of Securities
3 AAC 08.170 - Promoters' equity investment

Universal Citation: 3 AK Admin Code 08.170

Current through February 24, 2025

(a) Except as described in (c) of this section, the administrator will, in the administrator's discretion, disallow a public securities offering by a promotional or development stage company if, for an aggregate public offering

(1) of $1,000,000 or less, the promoters' equity investment is less than 10 percent of that amount;

(2) greater than $1,000,000 and no more than $1,500,000, the promoters' equity investment is less than the sum of $100,000 and seven percent of the amount by which the offering exceeds $1,000,000;

(3) greater than $1,500,000 and no more than $2,000,000, the promoters' equity investment is less than the sum of $135,000 and five percent of the amount by which the offering exceeds $1,500,000; and

(4) greater than $2,000,000, the promoters' equity investment is less than the sum of $160,000 and two and one-half percent of the amount by which the offering exceeds $2,000,000.

(b) For purposes of this section, the promoters' equity investment consists of the total of cash, property, other tangible assets, and intangible assets that the promoters contribute to the issuer, if the administrator accepts the value of the property, other tangible assets, and intangible assets. The promoters' equity investment may be adjusted by the issuer's earned surplus immediately before the public offering.

(c) If the promoters' equity investment consists of tangible assets of one-half of the amount required by (a) of this section, the administrator will consider the promoters' equity investment to be acceptable if all promotional shares are deposited in escrow in accordance with 3 AAC 08.180 - 3 AAC 08.186.

Authority:AS 45.55.120

AS 45.55.950

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