The issuer may not sell to more than 10 persons in New Mexico within any 12-month period. There is no filing fee for this exemption. Back to top A ccredited I nvestor E xemption U nder this exemption, sales of securities may be made exclusively to persons who are accredited investors as defined in Rule 501, Regulation D of the federal 1933 Securities Act. A general announcement of a limited nature may be made of the proposed offering by any means, including a brief description of the business in 25 words or less. The issuer may also deliver information in addition to the general announcement if delivered through an electronic database that is restricted to persons who have been prequalified as accredited investors.
General solicitation is permitted.
A is being relied on under federal law. The principal advantage to issuers using SCOR is the availability of free secondary trading and the ability to engage in general advertising or solicitation. Small issuers have a difficult time reaching an adequate audience and the elimination of these restrictions provides a far broader potential source of investors. SCOR offerings are subject to more rigorous review standards and issuers are encouraged to consult with the staff of the New Mexico Securities Division regarding applicable standards. The securities offered under SCOR may be sold through a broker-dealer that has a licensed sales force or they may be sold directly by the Company.