BCSC Extends Registration Exemption For MIEs Until End Of Year

The U.S. House of Representatives recently passed a "crowdfunding" bill that would allow companies to sell securities to individual investors via non-traditional means such as social networking websites. Specifically, the proposed amendments to the Securities Act of 1933 would provide a registration exemption for transactions involving individual investments limited to the lesser of $10,000 and 10% of an investor's income. The amount raised under the exemption would also be limited to an aggregate annual amount of $1 million, or $2 million if the issuer provided potential investors with audited financial statements. The issuer or intermediary would have to comply with certain requirements in order to utilize the exemption, including with respect to providing investor warnings, and resales of any securities purchased would be limited for one year.