Aero Performance Products Inc (fka AERP)

[roger wilco]

It's right here in Black & White

The Investment Company Act of 1940 also imposes, among others, the certain additional regulations on BDC’s designed to protect shareholder. Once the Company withdraws its BDC election, these protective regulations would no longer be in place. The key regulations include the following:

The issuance of senior equities and debt securities by a BDC is subject to certain limitations as outlined in Section 18 of the 1940 Act. Among these limitations is the requirement that BDCs maintain a net asset to senior securities ratio of 200%. In addition, all equity securities must have identical voting rights.

Section 61 of the 1940 Act subjects the issuance of warrants and options by a BDC to certain limitations, most notably the requirement that all options and warrants be approved by shareholders and the requirement that the exercise price of such instruments be at or above market price per share on the date of grant.

A BDC may not engage in certain transactions with affiliates without obtaining exemptive relief from the Commission;