SEC just raised the amount a "non-accredited" investor may invest in one or more Regulation Crowd Funding offerings in any 12 month period -accredited investors have no limit, see https://www.sec.gov/oiea/investor-alerts-bulletins/ib_crowdfunding-.html
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This is fantastic information, Jack, and an invaluable share for the community. Thanks!
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Yes, good news for filmmakers seeking to raise financing through equity crowdfunding. Just remember, you can only invest in a Regulation Crowdfunding offering through an online platform of a registered broker-dealer or a funding portal. Filmmakers may not offer Regulation Crowdfunding investments directly—they must use a broker-dealer or funding portal.
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Thanks for sharing Jack!
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This is interesting. We used Reg D for real estate back in the early 2000's. Makes sense that you could apply it to film. What do you think of Legion M as a sort of grassroots platform for funding for filmmakers? This was my concern, found in their prospectus "As of December 31, 2021, the Company has working capital with current assets that exceed current liabilities by $1,207,726, has an accumulated deficit of $14,416,704, and does not have liquid assets to satisfy its expected obligations for the next year without additional finance or revenue. The audit report states that our ability to continue as a going concern for the next twelve months is dependent upon our ability to generate cash from operating activities and/or to raise additional capital to fund our operations. Failure to raise additional capital could have a negative impact on not only our financial condition but also our ability to remain in business." Any thoughts about this? I know they're pushing hard to raise money but this seems like a huge deficit to actual profitability even if they go public.
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@dalenestuteville thanks for sharing this. Certainly concerning. My initial thought is that they have a corporate debt, and their funding for projects as stated is to raise cash from operating activities. Films are one off vehicles and if they are equity crowdfunding a film that should be separate from the balance sheet. I have a personal connection to a filmmaker who has made a project with them, all seems to be going well for them. Good to see the company's transparency regardless. Somewhat skeptical of these start-ups, however admire they are pushing boundaries for alternative investment vehicles.
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Good read!
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Jack Binder my thoughts as well. It's good to hear a positive experience.
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This is another fantastic share, Jack Binder. Thank you!
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Thanks for sharing....
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Interesting, thats good for filmmakers & producers. Been seeing a lot of equity crowdfunding pop up as of lately.