3 ms·

Uses Rule 506(b): "If the issuer will not use general solicitation or advertising to market the securities then the sale of securities can be issued under Rule

Uses Rule 506(b): "If the issuer will not use general solicitation or advertising to market the securities then the sale of securities can be issued under Rule 506(b) to an unlimited number of accredited investors[4] and up to 35 other purchasers."[1] [1] https://en.wikipedia.org/wiki/Regulation_D_(SEC)#Rule_506 https://en.wikipedia.org/wiki/Regulation_D_(SEC)#Rule_506

ProAm 9y ago
Im not sure why you posted this? Is this important? (honest question)
- burger_moon 9y ago
  If I understand correctly I believe they are pointing out that after a certain point in raising funds they will be forced to go public because they will have too many investors.
  - cryptoz 9y ago
    Elon seems pretty bent on having SpaceX do regular trips to Mars and back before IPO. I would guess that he will ensure that SpaceX stays within the private company rules so as not to go public until the Mars trips are commonplace. Also, does this mean that SpaceX could raise funds indefinitely without going public as long as they come from the same source?
    - deleted 9y ago
      [deleted]
    - londons_explore 9y ago
      And those 35 sources can do credit swaps and various other kinds of deals with other sources...
  - josephagoss 9y ago
    Is this true, I heard it a while ago: They will be forced to release the same financial information to the public as public companies do once they have too many investors however they do not have to go public in the sense of floating their stock.
ChuckMcM 9y ago
And it is an amendment to a previous filing, basically it just re-opened the previous round to allow another $100M in investment at the same terms. I have seen this done when someone comes along who would really like to invest in your privately held company but the company doesn't want to go through the whole process of evaluation and term negotiations of a new funding round. If your current investors are ok with it, you re-open the previous round (same price per share so only your post money valuation changes) same terms and same rights. If everyone signs off then you collect the money, issue the additional shares and carry on. At the time (July of this year) they were valued at $21B so $100M is about .5% of the company. I'd probably take that deal if I had $100M to spare and Elon would let me put it into SpaceX :-)

ProAm 9y ago

Im not sure why you posted this? Is this important? (honest question)

burger_moon 9y ago
If I understand correctly I believe they are pointing out that after a certain point in raising funds they will be forced to go public because they will have too many investors.
- cryptoz 9y ago
  Elon seems pretty bent on having SpaceX do regular trips to Mars and back before IPO. I would guess that he will ensure that SpaceX stays within the private company rules so as not to go public until the Mars trips are commonplace. Also, does this mean that SpaceX could raise funds indefinitely without going public as long as they come from the same source?
  - deleted 9y ago
    [deleted]
  - londons_explore 9y ago
    And those 35 sources can do credit swaps and various other kinds of deals with other sources...
- josephagoss 9y ago
  Is this true, I heard it a while ago: They will be forced to release the same financial information to the public as public companies do once they have too many investors however they do not have to go public in the sense of floating their stock.

ChuckMcM 9y ago

And it is an amendment to a previous filing, basically it just re-opened the previous round to allow another $100M in investment at the same terms. I have seen this done when someone comes along who would really like to invest in your privately held company but the company doesn't want to go through the whole process of evaluation and term negotiations of a new funding round. If your current investors are ok with it, you re-open the previous round (same price per share so only your post money valuation changes) same terms and same rights. If everyone signs off then you collect the money, issue the additional shares and carry on. At the time (July of this year) they were valued at $21B so $100M is about .5% of the company. I'd probably take that deal if I had $100M to spare and Elon would let me put it into SpaceX :-)