§ 240.13d-6. Exemption of certain acquisitions.
331 words·~2 min read·
/us/cfr/t17/s§ 240.13d-6·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)The acquisition of securities of an issuer by a person who, prior to such acquisition, was a beneficial owner of more than five percent of the outstanding securities of the same class as those acquired shall be exempt from section 13(d) of the Act; provided, that:
(1)The acquisition is made pursuant to preemptive subscription rights in an offering made to all holders of securities of the class to which the preemptive subscription rights pertain;
(2)Such person does not acquire additional securities except through the exercise of such person's pro rata share of the preemptive subscription rights; and
(3)The acquisition is duly reported, if required, pursuant to section 16(a) of the Act and the rules and regulations thereunder in this part.
(b)A group shall be deemed not to have acquired any equity securities beneficially owned by the other members of the group solely by virtue of their concerted actions relating to the purchase of equity securities directly from an issuer in a transaction not involving a public offering; provided, that:
(1)All the members of the group are persons specified in § 240.13d-1(b)(1)(ii);
(2)The purchase is in the ordinary course of each member's business and not with the purpose nor with the effect of changing or influencing control of the issuer, nor in connection with or as a participant in any transaction having such purpose or effect, including any transaction subject to § 240.13d-3(b);
(3)There is no agreement among or between any members of the group to act together with respect to the issuer or its securities except for the purpose of facilitating the specific purchase involved; and
(4)The only actions among or between any members of the group with respect to the issuer or its securities subsequent to the closing date of the non-public offering are those which are necessary to conclude ministerial matters directly related to the completion of the offer or sale of the securities. \[88 FR 76984, Nov. 7, 2023\]