The Commissioner of Securities Announces Amendment to the Invest Georgia Exemption (IGE)

The Securities and Charities Division of The Office of the Secretary of State (“Division”) has adopted an amendment to Rule 590-4-2-.08, the Invest Georgia Exemption, to reflect changes implemented by the Securities and Exchange Commission (“SEC”). The SEC changes are designed to modernize the intrastate offering exemption of Section 3(a)(11) of the Securities Act of 1933 by updating the Rule 147 safe harbor and introducing a new exemption, Rule 147A. The purpose of the Division’s amendment is to facilitate greater investment through the offer or sale of a security by an issuer by providing greater flexibility to those seeking to use IGE to facilitate investment and entrepreneurial activities within Georgia. Additionally, the amendment to IGE is intended to reduce the regulatory impact of the SEC’s amendment on existing and future issuers of securities.  This amendment is effective as of  July 11, 2017. The Invest Georgia Exemption (“IGE”) was created in 2011 by the Secretary of State Brian P. Kemp in his capacity as Commissioner of Securities. IGE allows for-profit businesses formed under Georgia law to raise up to $5 million from Georgia resident investors. Under IGE, Issuers of securities are limited to selling no more than $10,000 in securities to non-accredited Georgia investors. There is no limit for accredited Georgia investors. The Issuer must file a Form GA-1 with the Georgia Commissioner of Securities. For more information on the IGE, please contact the Georgia Securities Division at 404-654-6023 or IGE is a notice filing and does not constitute a license or registration. The issuance of a notice filing does not mean that the Georgia Commissioner of Securities has passed, in any way, upon the truth, completeness, or accuracy of the information filed, the merits of the securities offered, or has recommended or given approval to such security or transaction.