Can I change the terms of my offering if my Reg CF is already live?
Term Changes
Almost all changes to your live campaign will require a re-filing with the SEC. There are two types of changes:
- Non-material changes or amendments.
- Material Changes or amendments. Material amendments are changes that a reasonable investor would consider important in deciding whether or not to purchase the securities.
What material items can or cannot be changed mid-campaign?
Pre-disbursement:
The terms of the offering may be changed via material amendment and a reconfirmation of all outstanding investors. Please note that for we see about an average 80% reconfirmation rate, however, results may vary. See here for more details regarding the reconfirmation process.
Post-disbursement:
Terms cannot be changed. A change in terms once an offering has conducted its initial disbursement would require a new offering.
What are Terms?
Terms include, but are not limited to:
- Share price
- Valuation
- Security type
- Material rights of the securities offered
- Bonus shares are an implied term as they effectively offer a discount on the share price