Socializing 506b properties: What's allowed, what's not allowed?

[Christopher Boon]

Unlike a 506c, which you can promote online (social media, newsletter, etc.) and solicit prospective investors publicly, I believe that you can not solicit investors or business publicly if set up as a 506b.  What are the broad strokes (rules) around what you can and can't share online about your 506b deals?-

- Can you post about the property online BEFORE purchasing it to socialize what you are up to as long as you do not include a solicitation message to join in on the deal? 

- Can you post about the property online BEFORE purchasing it to socialize what you are up to along with a generic call to action (CTA) such as "Visit our website to learn more about what we do at XYZ company."

- Can you post about the property online AFTER purchasing it when there is no more need for additional investors or partners?

- Can you post about the property online AFTER purchasing it to simply share the news across your network and show appreciation for your team around a specific deal even if you do not include any solicitation message or CTA?

Thanks :)

[Taylor L.]

I believe a securities attorney (which I am not) would tell you that posting about it publicly before you have closed and/or when you are either contemplating a 506b offering or are in the midst of a 506b offering is conditioning the market, and is thus not allowed if you are doing 506b. My apologies for the run-on sentence :)

After the deal is closed and you are no longer offering securities is another matter. However, always check with your securities attorney.