Press release from the North Carolina Department of the Secretary of State:
DIYtiny, Inc. has become the first State crowdfunding issuer to use Local Public Offering (LPO) rules to offer securities in North Carolina, and the second filing under the North Carolina Providing Access to Capital for Entrepreneurs and Small Business Act (NC PACES).
Asheville-based DIYtiny, Inc.’s filing was confirmed on Tuesday, June 26.
The LPO option, a special exemption for North Carolina businesses raising less than $250,000, is designed to give issuers greater flexibility. LPOs allow issuers to advertise securities in ways that are typically prohibited. The LPO option also doesn’t require issuers to “host” the offerings on the internet.
The LPO option was designed with the concept of helping local entrepreneurs seeking to grow the economies of their communities.
The North Carolina Securities Division published administrative rules in 2017, establishing the process that companies must use to file for an exemption as a Local Public Offering for businesses interested in raising less than $250,000 through a securities offering to North Carolina investors.
The rules also created the North Carolina Paces Offering exemption, or NCPO. This specific exemption status allows issuers to offer securities of less than $2 million without having to register them.
Both North Carolina businesses and investors interested in finding out more about crowdfunding are invited to visit the NC Secretary of State’s website at www.sosnc.gov/divisions/securities/crowdfunding.