Small Corporate Offering Registration ("SCOR") Offering: The SCOR is a more complex version of the 504 offering. The SCOR offering provides a standardized disclosure format that is accepted by 43 States and allows increased freedom of solicitation and advertising over the standard Regulation D 504 exempt program. The standardized disclosure format (the U-7 form) also allows the company to comply with a large number of individual States securities laws utilizing one regional review instead of filing the offering with each individual State the company sells securities in.The SCOR does require audited financial statements for the past 2 fiscal years for offerings exceeding $500,000 and has a maximum 12 month cap of $1,000,000. You must also have 10% equity relative to the amount of capital you are raising through the offering. We typically recommend the standard 504 over SCOR due to its lack of restrictions, its ease of implementation, and its use of the more sophisticated and professional PPM disclosure document. The SCOR U-7 disclosure document is a question and answer document that we do not feel is very professional in its appearance to investors.
If you have any questions about whether a SCOR or 504 would be best for your transaction please feel free to call us directly to discuss specifics.
