SB44 Summary

• Amends Section 8-6-11 of the Alabama Securities Code to add a new intrastate offering exemption allowing Alabama corporations and for-profit entities to offer securities exclusively to Alabama residents without full registration.

• Limits intrastate offerings to a maximum aggregate of $1,000,000 (less securities sold in the prior 12 months) with individual purchasers capped at $5,000 unless they are accredited investors.

• Requires issuers to deposit investor funds in Alabama banks, provide written notice to the Securities Commission on Form CF1, and file a nonrefundable $150 fee within 10 days of first offer or 15 days after first sale.

• Establishes multiple conditions including: issuer must have principal place of business in Alabama, 80% of assets and proceeds must be used in-state, reasonable belief purchasers are investing for investment purposes, and no general solicitation without prior notice.

• Prohibits use of this exemption by investment companies, investment advisers, or issuers with disqualifying criminal convictions, fraud judgments, or administrative enforcement orders within five years.