Globex US to Raise $2.5 Million through Reg D (506c) Securities

04/01/2023 10:03 • Blockchain Buzz • 113 views

It is reported that Globex US, a digital asset infrastructure development company, will raise $2.5 million through the issuance of Reg D (506c) securities. The company’s valuation before this financing reached $74 million. It is reported that Globex US has also submitted a Reg S product application, so qualified investors in the United States and other regions can participate.

Digital asset infrastructure development company GlobexUS plans to raise $2.5 million at a valuation of $74 million

Introduction

Globex US, a digital asset infrastructure development company, has announced that it will raise $2.5 million through the issuance of Reg D (506c) securities. According to reports, the company’s valuation before this financing round was $74 million. Additionally, Globex US has submitted a Reg S product application, allowing qualified investors in the United States and other regions to participate.

What are Reg D (506c) Securities?

Reg D (506c) securities refer to a type of private placement that is exempt from registration with the Securities and Exchange Commission (SEC). This exemption allows companies to sell securities to qualified investors without disclosing information to the public. However, companies must verify that their investors are accredited, meaning that they meet certain financial criteria.

Why is Globex US Issuing Reg D (506c) Securities?

Globex US is issuing Reg D (506c) securities to raise capital to fund its growth and expansion plans. By issuing securities to qualified investors, the company can raise funds without going public or seeking investments from venture capital firms.

What is the Valuation of Globex US Before This Financing Round?

Before this financing round, Globex US was valued at $74 million. This valuation is based on the company’s assets, intellectual property, and potential for future growth.

How Will Qualified Investors in Other Regions Participate?

Globex US has submitted a Reg S product application to allow qualified investors in other regions to participate in this financing round. Reg S allows companies to sell securities to investors outside of the United States without registering with the SEC. However, companies must comply with local securities laws in the countries where they sell securities.

Conclusion

Globex US’s decision to issue Reg D (506c) securities to raise $2.5 million is a testament to the growing interest in digital assets and blockchain technology. With a valuation of $74 million, the company is poised for future growth and expansion. Investors in the United States and other regions can participate through the Reg S product application.

FAQs

1. What is the difference between Reg D (506b) and Reg D (506c) securities?
– Reg D (506b) securities allow companies to raise capital from accredited investors without engaging in any form of general solicitation, while Reg D (506c) securities allow companies to engage in general solicitation but only sell securities to accredited investors.
2. What is the role of the SEC in Reg D (506c) securities offerings?
– The SEC provides an exemption from registration for Reg D (506c) securities offerings, as long as certain requirements are met, such as verifying that investors are accredited.
3. Can non-accredited investors participate in Reg D (506c) securities offerings?
– No, Reg D (506c) securities offerings are only available to accredited investors.

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