RCC Holdings Corp fka RCCH

[Qone0]

No, the CEO can sell them to an accredited investor, who then sells them to the public through the pinksheet market. Because they are free trading.

The CEO gets the million, the accredited investor makes some easy no risk return, if they are shorting in advance of buying the 504.

Good deal for the CEO
Good deal for the accredited investor
Bad deal for the pinksheet buyer

An accredited investor is defined by federal securities law as:

. a bank, insurance company, registered investment company, business development company, or small business investment company;




It's the only reason to do a form D. There are many companies set up just to run these 504's into the pinksheet market.