What is a Material Change?

June 26 2023 9:51pm

Please Note: This article is written for Investors in offerings. For Issuer's looking for more information about material amendments to their offerings and related data, please consult our article here and speak with your account team. 

From time to time after an offering is live, a Company (also referred to as "Issuer") may have changes that affect their business and are relevant for investors. When this occurs, Company's are sometimes required to file material amendments to their offering via the SEC.

A material change is a significant change to the offering that requires reconfirmation from all investors (who are not marked "funds invested"), as per SEC regulations.

Examples of material changes that may occur are updated financials, new terms (maximum offering amount, bonuses, etc.), changes to the length of the campaign or a combination of those updates and other items.

When a material change is made to an offering, all investors, who have not yet received their ownership documents, are required to reconfirm their investments. Once the change is posted to the campaign, investors are notified via email regarding this update and provided a link to reconfirm their investment.

Additionally, 2 follow up emails are sent in the days between the change and the deadline to reconfirm the investment (5 business days (typically 7 days) after the material change).

You can reconfirm your investment through your portfolio by following the steps below:

  1. Login to your StartEngine account at: www.startengine.com
  2. Click your the user avatar in the right-hand corner
  3. Click on "My Portfolio"
  4. Click on the red "Action Required" button next to your investment to resubmit the card information.
  5. Click on the Green "Confirm Your Investment" button


See Related