California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 3 - Procedure for Qualification › Section 260.113 - Application for Qualification by Permit

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An application for the qualification of the offer and sale
					 of securities by permit pursuant to Section
					 25113 of
					 the Code shall, in addition to the facing page required by Section
					 260.110 of these rules and items 8
					 through 10 and 12 through 18 specified in Section
					 260.112 of these rules, continue
					 in the following form:
(NOTE: The applicant's response to Item 21(j) of the
					 application for qualification by permit pursuant to Corporations Code Section
					 25113 incorporates the information
					 requested by Item 11 of Section
					 260.112 of these rules.
					 Consequently, applicant's response to Item 11 should be "see response to Item
					 21(j)." In addition, the small company applicant's response to items of Section
					 260.112 and Section
					 260.113 of these rules may
					 incorporate the information contained in the Form U-7 by referring to the
					 appropriate page and question number of the Form U-7.)
ITEM 19. PRIOR ISSUANCES PURSUANT TO CODE SECTIONS
					 25102(f), (h), (n) AND
					 (o). If the applicant has issued securities
					 pursuant to the exemptions from qualification provided for in Sections
					 25102(f), (h), (n) and
					 (o) of the Code, briefly state the details of
					 the transaction(s).
ITEM 20. ADDITIONAL INFORMATION REQUIRED IN CONNECTION WITH
					 INTEREST OR PARTICIPATION IN OIL, GAS OR MINING LEASES; REAL ESTATE SYNDICATES;
					 AND MUTUAL WATER COMPANIES AND CHURCHES.
(i) Interest or participation in oil, gas or
				  mining titles or leases: The following, if appropriate:
(a) A description of the properties involved
				  and copies of all conveyances, assignments, leases, subleases or other
				  instruments or agreements relating to said properties together with an opinion
				  of counsel or title policy indicating that applicant has title to such
				  properties.
(b) A statement of the
				  area of interest to the applicant, a description of the plan of exploration
				  including, where available, anticipated drilling depth, the horizon or horizons
				  in which hydrocarbon substances are expected and the nature of such
				  hydrocarbons, the estimated costs of drilling and completing the well or wells
				  proposed to be drilled, and the availability of a market or markets for
				  hydrocarbons discovered.
(c) In the
				  case of programs other than wildcat drilling, a geological report and appraisal
				  which indicate the proposed method of development and production, a statement
				  of the method used in preparing such report, together with supporting
				  geological and engineering data, a table setting forth the estimated future
				  production and the present value thereof, together with a statement of the
				  factor or factors used in making such estimate, and an estimate of the expenses
				  to be incurred in connection with development and production of minerals as
				  proposed in such geological report.
(d) If the securities proposed to be issued
				  involve minerals other than oil, gas or other hydrocarbons, the applicant shall
				  include a mineral report which indicates the area of interest to the applicant,
				  the geological information available to such applicant with respect to such
				  area, the results of other mineral operations in the area, if known, a
				  description of the plan of operation including, where available, the extent of
				  ore deposits, the cost of development and production thereof, the market or
				  markets for minerals produced and the cost of marketing such
				  minerals.
(e) Copies of all
				  instruments or agreements which will convey an interest in minerals to the
				  proposed purchasers and a statement of the ownership of other interests in the
				  same minerals. In the event that there is a relationship or an arrangement
				  between one or more holders of such an interest in minerals and the applicant,
				  the nature thereof shall be described.