47-31B-304 Securities registration by qualification.
47-31B-304.
Securities registration by qualification.
(a) Registration permitted. A security
may be registered by qualification under this section.
(b) Required records. A registration statement under this section must contain the information
or records specified in § 47-31B-305, a consent to service of process complying with § 47-31B-611,
and, if required by rule adopted under this chapter, the following information or records:
(1)
With respect to the issuer and any significant subsidiary, its name, address, and form of
organization; the state or foreign jurisdiction and date of its organization; the general
character and location of its business; a description of its physical properties and
equipment; and a statement of the general competitive conditions in the industry or
business in which it is or will be engaged;
(2)
With respect to each director and officer of the issuer, and other person having a similar
status or performing similar functions, the person's name, address, and principal
occupation for the previous five years; the amount of securities of the issuer held by the
person as of the thirtieth day before the filing of the registration statement; the amount of
the securities covered by the registration statement to which the person has indicated an
intention to subscribe; and a description of any material interest of the person in any
material transaction with the issuer or a significant subsidiary effected within the previous
three years or proposed to be effected;
(3)
With respect to persons covered by paragraph (2), the aggregate sum of the remuneration
paid to those persons during the previous twelve months and estimated to be paid during
the next twelve months, directly or indirectly, by the issuer, and all predecessors, parents,
subsidiaries, and affiliates of the issuer;
(4)
With respect to a person owning of record or owning beneficially, if known, ten percent
or more of the outstanding shares of any class of equity security of the issuer, the
information specified in paragraph (2) other than the person's occupation;
(5)
With respect to a promoter, if the issuer was organized within the previous three years,
the information or records specified in paragraph (2), any amount paid to the promoter
within that period or intended to be paid to the promoter, and the consideration for the
payment;
(6)
With respect to a person on whose behalf any part of the offering is to be made in a
nonissuer distribution, the person's name and address; the amount of securities of the
issuer held by the person as of the date of the filing of the registration statement; a
description of any material interest of the person in any material transaction with the
issuer or any significant subsidiary effected within the previous three years or proposed
to be effected; and a statement of the reasons for making the offering;
(7)
The capitalization and long term debt, on both a current and pro forma basis, of the issuer
and any significant subsidiary, including a description of each security outstanding or
being registered or otherwise offered, and a statement of the amount and kind of
consideration, whether in the form of cash, physical assets, services, patents, goodwill,
or anything else of value, for which the issuer or any subsidiary has issued its securities
within the previous two years or is obligated to issue its securities;
(8)
The kind and amount of securities to be offered; the proposed offering price or the method
by which it is to be computed; any variation at which a proportion of the offering is to be
made to a person or class of persons other than the underwriters, with a specification of
the person or class; the basis on which the offering is to be made if otherwise than for
cash; the estimated aggregate underwriting and selling discounts or commissions and
finders' fees, including separately cash, securities, contracts, or anything else of value to
accrue to the underwriters or finders in connection with the offering or, if the selling
discounts or commissions are variable, the basis of determining them and their maximum
and minimum amounts; the estimated amounts of other selling expenses, including legal,
engineering, and accounting charges; the name and address of each underwriter and each
recipient of a finder's fee; a copy of any underwriting or selling group agreement under
which the distribution is to be made or the proposed form of any such agreement whose
terms have not yet been determined; and a description of the plan of distribution of any
securities that are to be offered otherwise than through an underwriter;
(9)
The estimated monetary proceeds to be received by the issuer from the offering; the
purposes for which the proceeds are to be used by the issuer; the estimated amount to be
used for each purpose; the order or priority in which the proceeds will be used for the
purposes stated; the amounts of any funds to be raised from other sources to achieve the
purposes stated; the sources of the funds; and, if a part of the proceeds is to be used to
acquire property, including goodwill, otherwise than in the ordinary course of business,
the names and addresses of the vendors, the purchase price, the names of any persons that
have received commissions in connection with the acquisition, and the amounts of the
commissions and other expenses in connection with the acquisition, including the cost of
borrowing money to finance the acquisition;
(10)
A description of any stock options or other security options outstanding, or to be created
in connection with the offering, and the amount of those options held or to be held by
each person required to be named in paragraph (2), (4), (5), (6), or (8) and by any person
that holds or will hold ten percent or more in the aggregate of those options;
(11)
The dates of, parties to, and general effect concisely stated of each managerial or other
material contract made or to be made otherwise than in the ordinary course of business
to be performed in whole or in part at or after the filing of the registration statement or
that was made within the previous two years, and a copy of the contract;
(12)
A description of any pending litigation, action, or proceeding to which the issuer is a party
and that materially affects its business or assets, and any litigation, action, or proceeding
known to be contemplated by governmental authorities;
(13)
A copy of any prospectus, pamphlet, circular, form letter, advertisement, or other sales
literature intended as of the effective date to be used in connection with the offering and
any solicitation of interest used in compliance with § 47-31B-202(17)(B);
(14)
A specimen or copy of the security being registered, unless the security is uncertificated;
a copy of the issuer's articles of incorporation and bylaws or their substantial equivalents,
in effect; and a copy of any indenture or other instrument covering the security to be
registered;
(15)
A signed or conformed copy of an opinion of counsel concerning the legality of the
security being registered, with an English translation if it is in a language other than
English, which states whether the security when sold will be validly issued, fully paid, and
nonassessable and, if a debt security, a binding obligation of the issuer;
(16)
A signed or conformed copy of a consent of any accountant, engineer, appraiser, or other
person whose profession gives authority for a statement made by the person, if the person
is named as having prepared or certified a report or valuation, other than an official
record, that is public, which is used in connection with the registration statement;
(17)
A balance sheet of the issuer as of a date within four months before the filing of the
registration statement; a statement of income and a statement of cash flows for each of the
three fiscal years preceding the date of the balance sheet and for any period between the
close of the immediately previous fiscal year and the date of the balance sheet, or for the
period of the issuer's and any predecessor's existence if less than three years; and, if any
part of the proceeds of the offering is to be applied to the purchase of a business, the
financial statements that would be required if that business were the registrant; and
(18)
Any additional information or records required by rule adopted or order issued under this
chapter.
(c) Conditions for effectiveness of registration statement. A registration statement under this
section becomes effective thirty days, or any shorter period provided by rule adopted or order issued
under this chapter, after the date the registration statement or the last amendment other than a price
amendment is filed, if:
(1)
A stop order is not in effect and a proceeding is not pending under § 47-31B-306;
(2)
The director has not issued an order under § 47-31B-306 delaying effectiveness; and
(3)
The applicant or registrant has not requested that effectiveness be delayed.
(d) Delay of effectiveness of registration statement. The director may delay effectiveness once
for not more than ninety days if the director determines the registration statement is not complete in
all material respects and promptly notifies the applicant or registrant of that determination. The
director may also delay effectiveness for a further period of not more than thirty days if the director
determines that the delay is necessary or appropriate.
(e) Prospectus distribution may be required. A rule adopted or order issued under this chapter
may require as a condition of registration under this section that a prospectus containing a specified
part of the information or record specified in subsection (b) be sent or given to each person to which
an offer is made, before or concurrently, with the earliest of:
(1)
The first offer made in a record to the person otherwise than by means of a public
advertisement, by or for the account of the issuer or another person on whose behalf the
offering is being made or by an underwriter or broker-dealer that is offering part of an
unsold allotment or subscription taken by the person as a participant in the distribution;
(2)
The confirmation of a sale made by or for the account of the person;
(3)
Payment pursuant to such a sale; or
(4)
Delivery of the security pursuant to such a sale.
Source: SL 2004, ch 278, § 13.