How does a material change work in a Regulation Crowdfunding (CF) Offering?

When a significant or fundamental change is made to the terms of an offering (or to the underlying company), the event is considered a “material change” and requires acknowledgment by all investors whose investments have yet to be accepted. When a filing is updated to include a material change, these investors are sent a communication of the change and must reconfirm their investment in light of the change within 5 business days. Investors who do not reconfirm will be refunded their initial investment.