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Can I offer equity to investors without violating securities laws in New Mexico? What are the requirements?

Offering Equity to Investors in New Mexico

To offer equity to investors in New Mexico, you must comply with the securities laws of the state. The New Mexico Uniform Securities Act regulates the offer and sale of securities in the state.

Requirements for Offering Equity

To offer equity to investors in New Mexico, you must either register the offering with the New Mexico Securities Division or qualify for an exemption from registration.

According to [2.1]%29" >58-13C-403 NMSA, it is unlawful for a person to transact business in New Mexico as an investment adviser unless the person is registered pursuant to the New Mexico Uniform Securities Act as an investment adviser or is exempt from registration as an investment adviser pursuant to Subsection B of this section.

Subsection B of [2.1]%29" >58-13C-403 NMSA provides exemptions from the registration requirement for certain persons, including those without a place of business in New Mexico that is registered pursuant to the securities act of the state in which the person has its principal place of business if its only clients in New Mexico are federal covered investment advisers, investment advisers registered pursuant to the New Mexico Uniform Securities Act, or broker-dealers registered pursuant to that act.

Conclusion

To offer equity to investors in New Mexico, you must comply with the securities laws of the state. You may need to register the offering with the New Mexico Securities Division or qualify for an exemption from registration. Please consult with a qualified attorney to determine the specific requirements for your offering.

Based on the information provided, it is unclear whether you are a federal covered investment adviser or not. If you are a federal covered investment adviser, you may need to comply with the notice filing requirement under [3.3]%29" >58-4-405 NMSA. Please consult with a qualified attorney to determine the specific requirements for your offering.

Source(s):
Jurisdiction

New Mexico