Reg A
The sum of all cash and other consideration to be received for the securities (“aggregate
offering price”) shall not exceed $5,000,000, including no more than $1,500,000 offered by all selling security holders,
less the aggregate offering price for all securities sold within the twelve months before the start of and during the offering
of securities in reliance upon Regulation A. No affiliate resales are permitted if the issuer has not had net income from
continuing operations in at least one of its last two fiscal years.
He would have to file a Reg A with the state securities commission as well as the SEC to be completely legal. It would almost have to be a private treaty type sell. He is an Affiliate and with no audit could have problems proving the net income.
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