California Corporations Code

§ 25206.1

CORP § 25206.1 Effective Jan 1, 2023Div. 1 · Title 4 · Part 3 · Ch. 1

Statute text

(a)For purposes of this section, a “finder” is a natural person who, for direct or indirect compensation, introduces or refers one or more accredited investors, as that term is defined in Rule 501(a) of Regulation D under the Securities Act of 1933 (17 C.F.R. 230.501(a)), to an issuer or an issuer to one or more accredited investors, solely for the purpose of a potential offer or sale of securities of the issuer in an issuer transaction in this state, and who does not do any of the following:

(1)Provide services to an issuer for a transaction or a series of related transactions for the offer or sale of securities of the issuer that exceeds a securities purchase price of fifteen million dollars ($15,000,000) in the aggregate.

(2)Participate in negotiating any of the terms of the offer or sale of the securities.

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Legislative history

Amended by Stats. 2022, Ch. 452, Sec. 73. (SB 1498) Effective January 1, 2023.