What is an Accredited Investor?
- 1. Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;
- 2. A natural person who has an income above $200,000 individually or $300,000 jointly with a spouse in each of the two previous years, or who, either individually or jointly with his/or her spouse, has a minimum net worth of $1,000,000, (net worth shall be determined exclusive of home, home furnishings and automobiles);
- 3. Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii); and
- 4. Any entity in which all of the equity owners are accredited investors.
Subscriptions will not be accepted by the Company from more than 35 Non-Accredited Investors. Moreover, each Non-Accredited Investor will be required to meet one of the following criteria:
- 1. Have a minimum net worth of at least $200,000 (exclusive of home, home furnishings and automobiles) or
- 2. Have a minimum net worth of at least $100,000 (exclusive of home, home furnishings, automobiles) and during the last taxable year had and during the current taxable year expects to have a minimum gross income of $60,000.
- 3. The Investor has such knowledge and experience in financial and business matters that he is able to evaluate the merits and risks of an investment in the Units.
- 4. The Investor has the financial ability to bear the economic risk of an investment in the Units, adequate means of providing for his current needs and personal contingencies and no need for liquidity in an investment in the Units.
- 5. The Investor is acquiring the Units for his own account for investment and not with a view to resale or distribution.