SEC Update – July 8, 2016

By: Robert Grosshandler | July 8, 2016

Today we file!

Working with our auditors at Wipfli, our technology and escrow provider at FundAmerica, and our SEC counsel Sara Hanks, we’re ready to file what we hope and believe is our final version of the Offering Circular.

Once the auditor gives us its final consent, an Edgarized version (basically, a brain-dead HTML version of the circular) is submitted to, wait for it, Edgar.  That filing starts a process at the SEC.

Update: Consent Received.  Filing to happen by noon, E.S.T.

It is my understanding that at this point, once they receive the filing, the SEC has two business days to inspect it.  If they are satisfied we’ve crossed the appropriate Ts and dotted the appropriate Is, they will inform us that we’re “qualified”.

At that point, we can start actually letting investors invest.  Their investment goes into an escrow account.  Our escrow provider does background checks on each investor to make sure the investor complies with various laws and regulations.  It’s Patriot Act related legislation and regs designed to prevent money laundering.  Generally, it’s called AML (anti money-laundering).

Another part of this background check step is designed to make sure that normal people don’t invest more money than Regulation A allows.

Once we have received at least $100,000 in investments, we can close.  That is, take the money out of escrow and put it into our own bank account, and start using it to build the business.  As more investors choose to back us we’ll be able to move their money out of the escrow and into our bank once they’ve passed the appropriate checks without any further minimums.

If we don’t reach that $100,000 minimum by December 31, 2016, those investors get their money back from escrow.

After months of preparation, now the real fun is about to begin.