Arizona Crowdfunding Law Fact Sheet

Arizona State SealAs covered earlier this year, Arizona has moved forward with an intrastate crowdfunding bill that was signed into law last week.  After being voted on in both the house and senate, without a single negative vote or abstention, the bill was quickly signed by Governor Doug Ducey.

The House has put together a decent fact sheet on the exemption explaining how local Arizona companies may utilize the exemption, which is embedded below, but in brief:

  • The sum of all cash and other consideration to be received for all sales of securities does not exceed $1 million in a 12-month period, if the issuer has not undergone a financial audit of the prior fiscal year.
  • The sum of all cash and other consideration to be received for all sales of securities does not exceed $2.5 million in a 12-month period, if the issuer has undergone a financial audit of the prior fiscal year.
  • An offer or sale to an individual occupying similar status as the issuer, or to a person owning 10% or more of the outstanding shares of securities of the issuer does not count towards the monetary limitations.

In regards to individual investor limitations:

  • The issuer does not accept more than $10,000 from any single purchaser unless the purchaser is an accredited investor pursuant to the Securities Act.  All investors must provide proof they are Arizona residents.

 

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