What does Section 12 (g) mean and how can it affect my deal?

Section 12 (g) of the Exchange Act indicates a way in which an issuer will become a “reporting issuer” or a “public company” due to its size. What this means is that companies with a class of equity securities held by either 2,000 or more persons with total assets greater than $10 million, or 500 or more persons who are not accredited investors, are to register those securities with the SEC.

DealMaker can assist companies that wish to raise capital through a great number of investors yet not require Section 12 (g) to come into effect. The most common method of doing so is through a custodial holder of the investors’ securities, for which we are partnered with reliable industry leaders that can hold these securities as one. Effectively bringing together a significant number of investors, without prompting the requirements as set forth by the SEC under S.12(g).