What does it mean when a company is conducting a "close"?

For Regulation Crowdfunding, after 21 days if the Company has reached their minimum funding goal, they are able to conduct a "close" on their offering. The Company is required to give at least 5 business days notice to their investors before conducting a close. After that period, all cleared and received investments will be moved to the Company's account and cannot be refunded.

If I am included in this "close" can I later cancel my investment?

No, you cannot. If your investment has "cleared" the necessary 10 day ACH clearing period as well as any Anti-Money Laundering or Background checks, you will have up until 48 hours prior to that updated close date to cancel your offering. If you do not cancel before the close, you will not be able to cancel your investment later as the funds will have been moved to the company's account.

 

 

Related Articles

Recently Viewed Articles