Garrett Security - Canada

What Does A Registration Rights Agreement Do

In the absence of registration under the Securities Act, unlisted or otherwise restricted securities are most often sold under Rule 144 of the Securities Act. While Rule 144 is useful, it excludes the sale of restricted securities during an applicable holding period (which is six months or one year, depending on the relevant facts) and subjects volume and sale restrictions to the sale of "controlling" securities (typically securities held by a promoter who also sits on the board of directors or holds 10% or more of the company`s shares). Other exceptions to registration may be available. However, the use of another exception would limit the pool of potential investors to institutional investors and certain other sophisticated investors and would generally lead buyers to demand a "liquidity discount" on the purchase price, as the...
Radioworld Inc - Canadian Distributor of Garrett Security and Law Enforcement products