2006 Minnesota Statutes

80A.52 SECTION 304; SECURITIES REGISTRATION BY QUALIFICATION.
    (a) Registration permitted. A security may be registered by qualification under this section.
    (b) Required records. A registration statement under this section must contain the
information or records specified in section 80A.53, a consent to service of process complying with
section 80A.88, and, if required by rule adopted under this chapter, the following information
or records:
    (1) with respect to the issuer and any significant subsidiary, its name, address, and form of
organization; the state or foreign jurisdiction and date of its organization; the general character and
location of its business; a description of its physical properties and equipment; and a statement of
the general competitive conditions in the industry or business in which it is or will be engaged;
    (2) with respect to each director and officer of the issuer, and other person having a similar
status or performing similar functions, the person's name, address, and principal occupation
for the previous five years; the amount of securities of the issuer held by the person as of the
30th day before the filing of the registration statement; the amount of the securities covered by
the registration statement to which the person has indicated an intention to subscribe; and a
description of any material interest of the person in any material transaction with the issuer or a
significant subsidiary effected within the previous three years or proposed to be effected;
    (3) with respect to persons covered by paragraph (2), the aggregate sum of the remuneration
paid to those persons during the previous 12 months and estimated to be paid during the next
12 months, directly or indirectly, by the issuer, and all predecessors, parents, subsidiaries, and
affiliates of the issuer;
    (4) with respect to a person owning of record or owning beneficially, if known, ten percent
or more of the outstanding shares of any class of equity security of the issuer, the information
specified in paragraph (2) other than the person's occupation;
    (5) with respect to a promoter, if the issuer was organized within the previous three years, the
information or records specified in paragraph (2), any amount paid to the promoter within that
period or intended to be paid to the promoter, and the consideration for the payment;
    (6) with respect to a person on whose behalf any part of the offering is to be made in a
nonissuer distribution, the person's name and address; the amount of securities of the issuer
held by the person as of the date of the filing of the registration statement; a description of any
material interest of the person in any material transaction with the issuer or any significant
subsidiary effected within the previous three years or proposed to be effected, and a statement of
the reasons for making the offering;
    (7) the capitalization and long-term debt, on both a current and pro forma basis, of the
issuer and any significant subsidiary, including a description of each security outstanding or
being registered or otherwise offered, and a statement of the amount and kind of consideration,
whether in the form of cash, physical assets, services, patents, goodwill, or anything else of value,
for which the issuer or any subsidiary has issued its securities within the previous two years or
is obligated to issue its securities;
    (8) the kind and amount of securities to be offered; the proposed offering price or the method
by which it is to be computed; any variation at which a proportion of the offering is to be made to
a person or class of persons other than the underwriters, with a specification of the person or class;
the basis on which the offering is to be made if otherwise than for cash; the estimated aggregate
underwriting and selling discounts or commissions and finders' fees, including separately
cash, securities, contracts, or anything else of value to accrue to the underwriters or finders in
connection with the offering or, if the selling discounts or commissions are variable, the basis of
determining them and their maximum and minimum amounts; the estimated amounts of other
selling expenses, including legal, engineering, and accounting charges; the name and address of
each underwriter and each recipient of a finder's fee; a copy of any underwriting or selling group
agreement under which the distribution is to be made or the proposed form of any such agreement
whose terms have not yet been determined; and a description of the plan of distribution of any
securities that are to be offered otherwise than through an underwriter;
    (9) the estimated monetary proceeds to be received by the issuer from the offering; the
purposes for which the proceeds are to be used by the issuer; the estimated amount to be used for
each purpose; the order or priority in which the proceeds will be used for the purposes stated; the
amounts of any funds to be raised from other sources to achieve the purposes stated; the sources
of the funds; and, if a part of the proceeds is to be used to acquire property, including goodwill,
otherwise than in the ordinary course of business, the names and addresses of the vendors, the
purchase price, the names of any persons that have received commissions in connection with the
acquisition, and the amounts of the commissions and other expenses in connection with the
acquisition, including the cost of borrowing money to finance the acquisition;
    (10) a description of any stock options or other security options outstanding, or to be created
in connection with the offering, and the amount of those options held or to be held by each person
required to be named in paragraph (2), (4), (5), (6), or (8) and by any person that holds or will
hold ten percent or more in the aggregate of those options;
    (11) the dates of, parties to, and general effect concisely stated of each managerial or other
material contract made or to be made otherwise than in the ordinary course of business to be
performed in whole or in part at or after the filing of the registration statement or that was made
within the previous two years, and a copy of the contract;
    (12) a description of any pending litigation, action, or proceeding to which the issuer is a
party and that materially affects its business or assets, and any litigation, action, or proceeding
known to be contemplated by governmental authorities;
    (13) a copy of any prospectus, pamphlet, circular, form letter, advertisement, or other sales
literature intended as of the effective date to be used in connection with the offering and any
solicitation of interest used in compliance with section 80A.46(17)(B);
    (14) a specimen or copy of the security being registered, unless the security is uncertificated;
a copy of the issuer's articles of incorporation and bylaws or their substantial equivalents, in
effect; and a copy of any indenture or other instrument covering the security to be registered;
    (15) a signed or conformed copy of an opinion of counsel concerning the legality of the
security being registered, with an English translation if it is in a language other than English,
which states whether the security when sold will be validly issued, fully paid, and nonassessable
and, if a debt security, a binding obligation of the issuer;
    (16) a signed or conformed copy of a consent of any accountant, engineer, appraiser, or other
person whose profession gives authority for a statement made by the person, if the person is
named as having prepared or certified a report or valuation, other than an official record, that is
public, which is used in connection with the registration statement;
    (17) a balance sheet of the issuer as of a date within four months before the filing of the
registration statement; a statement of income and a statement of case flows for each of the three
fiscal years preceding the date of the balance sheet and for any period between the close of the
immediately previous fiscal year and the date of the balance sheet, or for the period of the issuer's
and any predecessor's existence if less than three years; and, if any part of the proceeds of the
offering is to be applied to the purchase of a business, the financial statements that would be
required if that business were the registrant; and
    (18) any additional information or records required by rule adopted or order issued under
this chapter.
    (c) Conditions for effectiveness of registration statement. A registration statement under
this section becomes effective 30 days, or any shorter period provided by rule adopted or order
issued under this chapter, after the date the registration statement or the last amendment other
than a price amendment is filed, if:
    (1) a stop order is not in effect and a proceeding is not pending under section 80A.54;
    (2) the administrator has not issued an order under section 80A.54 delaying effectiveness; and
    (3) the applicant or registrant has not requested that effectiveness be delayed.
    (d) Delay of effectiveness of registration statement. The administrator may delay
effectiveness once for not more than 90 days if the administrator determines the registration
statement is not complete in all material respects and promptly notifies the applicant or registrant
of that determination. The administrator may also delay effectiveness for a further period of not
more than 30 days if the administrator determines that the delay is necessary or appropriate.
    (e) Prospectus distribution may be required. A rule adopted or order issued under this
chapter may require as a condition of registration under this section that a prospectus containing a
specified part of the information or record specified in subsection (b) be sent or given to each
person to which an offer is made, before or concurrently, with the earliest of:
    (1) the first offer made in a record to the person otherwise than by means of a public
advertisement, by or for the account of the issuer or another person on whose behalf the offering
is being made or by an underwriter or broker-dealer that is offering part of an unsold allotment or
subscription taken by the person as a participant in the distribution;
    (2) the confirmation of a sale made by or for the account of the person;
    (3) payment pursuant to such a sale; or
    (4) delivery of the security pursuant to such a sale.
History: 2006 c 196 art 1 s 13
NOTE: This section, as added by Laws 2006, chapter 196, article 1, section 13, is effective
August 1, 2007. Laws 2006, chapter 196, article 1, section 52.