Document dated Mar. 4, 2025, received from ARK LEG Apr. 16, summarized on Apr. 21.
Bill Provisions
Clarifies that exempt transaction under Arkansas securities act (ARK FIN 23-42-101) is an offer or sale of a security by an issuer if conducted according to certain conditions.
Issuer is a for-profit business entity formed under ARK laws, registered with Secretary of State, transaction meets requirements of federal exemption for intrastate offerings.
Sum of all consideration to be received for sales of security relying on exemption shall not exceed $10,000,000, less the aggregate received in 12 months before exempt sale
The issuer shall not accept more than $100,000 from any single purchaser unless purchaser is accredited investor or from individuals residing at same primary residence
All funds received from investors shall be deposited into a bank authorized to do business in the state and used according to the representations made to investors.
Must file proof of exemption in writing at least 10 days before securities are sold.
Shall inform purchasers that securities have not been registered and cannot be resold unless they are registered or qualified for exemption, are subject to resale limitations.
Commission or remuneration shall not be paid for any person’s participation in offer or sale of securities for issuer unless the person is registered as broker-dealer or agent.
Legislative History
On Feb. 12, 2025, bill was introduced in Senate; on Feb. 19, 2025, bill passed Senate.
On Feb. 19, 2025, bill was introduced in House; on Mar. 3, 2025, bill passed House.
On Mar. 4, 2025, bill was signed into law by the governor and assigned Act 236.
Effectiveness
Act effective 90 days after legislature adjourned sine die, so Aug. 5, 2025.
Regulators
ARK LEG
Entity Types
B/D; Corp
Reference
Act 236, Bill SB220, 3/4/2025; Citation: *ARK FIN* 23-42-504(a)(12), 23-42-101;
