Hello, I'm confused about the exact timing of filing a 506(b) with the SEC in a pre-seed round. Let's assume that an entrepreneur only raises money from SAFE agreements that convert into securities on the next equity financing round. Would the entrepreneur file the 506(b) and subsequent state blue sky filings when:a) SAFEs are signed and money is wired to the company. In this situation, they technically haven't sold the security yet as its just a pre-emptive promise to a security in the future.b) When they raise the equity financing round in the future and the SAFEs convert into securities.Things I've already read up on (so no need to address in the comments):-the merits of filing vs. not filing for privacy-the different types of SEC filings and the advantages of each with accredited, non-accredited, and state filings.Note: I'm not raising a round. This is a purely theoretical example as I'm conducting research on fees/filing process. see hubwealthy.com/wealthy
0 comments:
Post a Comment