Small Corporate Offerings

Regulation D Rule 504 is a safe harbor exemption for the sale of securities to rise up to $1 million per year. Prior to April 7, 1999, an issuer could effectively "go public" by selling free trading stock. Rule changes effective April 7 do not alter the ability to use the exemption, but the stock offered must be restricted unless it is registered in one of the blue sky states which have a compatible blue sky rule. The intent behind the Rule change is to compel issuers to file in a state which offers the SCOR or Small Corporate Offering procedure.