New York Codes, Rules and Regulations › Title 13 - DEPARTMENT OF LAW › Chapter III - THEATRICAL SYNDICATION FINANCING › Part 50 - THEATRICAL FINANCING › Section 50.4 - Additional contents of offering literature filed pursuant to section 50.1(k)(1) of this Part in connection with an offering for a theatrical production company which will use the proceeds for more than one production or for one or more nonspecified productions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) In addition to all applicable
				requirements of section
				50.3(a)  of this
				Part, set forth on the outside front cover page the following:
(1) The name of the theatrical production
				company and a brief statement of its purpose (
i.e.,
production, development of properties, investment) and whether or not specific
				properties for the venture have been identified. If the company intends to
				engage in more than one type of activity, the approximate amount and
				percentages which will be allocated for each activity. Such statement will
				thereafter, for the purpose of the offering literature, be referred to as the
				"business of the theatrical production company".
(2) a statement in capital letters printed in
				boldface roman type at least as large as 10-point modern type and at least two
				points leaded (or if typed, with underlining);
SPECIAL RISKS:
THE PROCEEDS OF THIS OFFERING WILL BE USED FOR MORE
				  THAN ONE VENTURE. THEREFORE, WHILE THE LOSSES FROM AN UNSUCCESSFUL PRODUCTION
				  MAY BE OFFSET IN WHOLE OR IN PART BY THE PROFITS OF A SUCCESSFUL PRODUCTION,
				  INVESTORS SHOULD NOTE THAT PROFITS FROM A SUCCESSFUL PRODUCTION MIGHT BE
				  DIVERTED TO AN UNSUCCESSFUL ONE.
if at least 75 percent of the proceeds of the offering are
				  not allocated to specific named productions to which the issuer or other
				  offeror hold the production right or rights to invest at the time of the
				  offering, the above statement should continue, in the same type, as
				  follows:
BECAUSE LESS THAN 75 PERCENT OF THE PROCEEDS OF THIS
				  OFFERING ARE NOW ALLOCATED TO SPECIFIED PRODUCTIONS TO WHICH THE ISSUER OR
				  OTHER OFFEROR HOLD THE PRODUCTION RIGHT OR RIGHTS TO INVEST, THIS OFFERING IS
				  DEEMED TO BE A "BLIND POOL". A "BLIND POOL" IS A THEATRICAL OFFERING WHICH DOES
				  NOT SET FORTH EACH SPECIFIC PROPERTY WHICH WILL BE PRESENTED AND WHICH WILL
				  ULTIMATELY BE A SOURCE OF THE THEATRICAL PRODUCTION COMPANY's PROFITS, IF
				  ANY.
(3) The minimum
				amount necessary to initiate the business of the theatrical production company
				and a statement that the proceeds of the offering will not be expended if such
				minimum is not obtained, but will be returned to the investors therein except,
				that if any of the investors have so authorized such proceeds may be used for
				the limited purpose of acquiring production rights, costs reasonably related to
				such acquisition and organizational and offering expenses. (The minimum must be
				demonstrably sufficient to bring the theatrical production company to the point
				where it is possible to attain profits,
e.g.,
the presentation
				of a production to a paying audience, the sale of a property developed by the
				theatrical production company or an investment in a theatrical production will
				be fully capitalized upon the receipt of such investment.)