This article provides an overview of the process following the close of a successful Honeycomb offering!
Overview:
Congratulations on the successful completion of your Honeycomb offering! You have sold promissory notes to a group of supportive investors who believe in your company’s vision. This overview outlines the key steps in the closing process. We'll guide you through post-offering procedures, compliance requirements, and maintaining investor relationships.
Closing Documents:
Investor List - document and the official record of th individuals or entities who have invested in your offering, along with key financial details related to their investments.
Repayment Schedule - financial document that outlines the specific terms and timing of repayments for a loan or debt obligation. In the context of a business loan, it typically provides information about the future monthly payments, including the allocation of those payments between principal and interest.
Receiving your funds:
Confirm Bank Details - To ensure the accuracy and security of your business's financial transactions, we require a verbal verification of your bank account's wire transfer information. This additional step is a standard procedure to safeguard your funds and maintain the integrity of your financial transactions. A representative of the Honeycomb team will contact you to confirm this information prior to the payment of funds.
Wire Payment - Honeycomb will disburse your offering funds, less fees, directly to your business bank account. Available funds will be paid via wire transfer from the escrow bank (Silicon Valley Bank) to your business bank account.
Ongoing Reporting
State Notice Filing -If your business operates in a state that mandates a notice filing for Regulation CF offerings, you will be responsible for submitting the required documentation and payment to the state regulatory authority. This notice filing is an essential step to remain compliant with state-specific regulations.
Year-end financial statements - As part of our commitment to transparency and financial accountability, we require businesses to submit their year-end financial statements. These statements provide valuable insights into your company's financial performance, helping to build trust and confidence among your investors. We kindly request that you provide these statements at the conclusion of each fiscal year to ensure ongoing compliance with this requirement.
Annual Report - Form C/AR - Form C-AR, or the "Annual Report for Regulation Crowdfunding," is a mandatory filing that businesses conducting Regulation CF crowdfunding campaigns are required to submit to the SEC and make available to their investors at the end of the business year. This report provides a comprehensive update on the business's financial and operational status, including financial statements, use of funds, business progress, and other relevant information. It is typically due within 120 days after the end of the business's fiscal year. The purpose of Form C-AR is to ensure ongoing transparency and disclosure to investors who have supported the business through crowdfunding campaigns.