Ala. Admin. Code r. 830-X-4-.08

Current through Register Vol. 42, No. 12, September 30, 2024

Section 830-X-4-.08 - Dilution

Equity shares sold to the public shall not have a greater dilution than sixty percent (60%). To determine the book value of all shares outstanding upon completion of the offering add the net proceeds of the public offering (the amount remaining after deduction commissions and expenses of the offering) to the net tangible book value of the company before the offering and divide this resulting dollar amount by the total number of shares to be outstanding upon completion of the offering. All prospectuses and offering circulars must contain a paragraph headed DILUTION showing the method used in arriving at the book value of all shares outstanding upon completion of the public offering and the increase in value of the insiders' shares.

Author:

Filed September 30, 1982. Readopted: Filed November 9, 1983. Amended: Filed September 28, 1990. Amended: Filed January 25, 1996; effective February 29, 1996.

Statutory Authority:Code of Ala. 1975, § 8-6-23.