Rule 506

The Regulation D 506 offering, has no limited on the amount of capital that can be raised for a transaction. Under Regulation D 506, companies can raise capital through the sales of securities, with no limitation on the type of transaction for which the exemption is invoked. Regulation D 506 provides an exemption for limited offers and sales of securities without regard to the dollar amount of the offering.

 Regulation D 506 is available to unlimited accredited investors and up to 35 non-accredit investors. All non-accredit investors , either alone or with a purchaser representative, must be sophisticated, that is they must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risk of the prospective investment.

Because the Regulation D 506 contains no limitations on the amount of funds that can be raised, it is the exemption from registration that is frequently used. Regulation D 506 offerings are exempt from State securities laws - the Federal regulations supersedes the State rules, however most States will want a copy of the Form D submitted if you are selling securities to investors that reside in their State.