What is Included in a Rule 701 Report?

The Securities and Exchange Commission created an exemption Rule 701, allowing companies to issue equity compensation without registering the securities under the Securities Act.

Note: The Rule 701 feature is only available for premium account holders. Kindly upgrade your account to unlock this feature. 

After filling in the details and generating the report, it is automatically downloaded in the form of an Excel sheet. Double-click the Excel sheet to open the downloaded report.

The first sheet is a cover that tells you what you will find and the company name. The downloaded Rule 701 report includes:

RULE 701

The sheet will display the quantity of shares – common, preferred, options, and warrants selected for Rule 701 exemption within the specific checking period along with the value of those shares. 

It also highlights the qualification criteria passed and qualifying for Rule 701 exemption. 

COMMON EQUITIES

To view the next sheet, click on the tab “Common Equities” at the bottom of the sheet. The sheet will display all the kinds of common equities that the company has selected for Rule 701 exemption. 

Here, you can see the common shares that have been given from which equity class, the shareholder’s name, the shareholder type, the grant name, the date it was issued, the amount of securities, the price per share, and the aggregate sales price.

PREFERRED EQUITIES

The next sheet shows all the preferred shares selected by the company for Rule 701 exemption. To view, click on the “Preferred Equities” tab at the bottom of the sheet.

It holds details of the preferred shares that have been given from which equity class, the shareholder’s name, the shareholder type, the grant name, the date it was issued, the amount of securities, the price per share, and the aggregate sales price.

OPTIONS

The report also holds all the options selected by the company for Rule 701 exemption. To view, click on “Options” from the bottom of the sheet.

The sheet displays the options issued from which option class, the shareholder’s name, the shareholder type, the grant name, the date it was issued, the amount of securities, the price per share, and the aggregate sales price.

WARRANTS

The last sheet in the report would be the warrants selected by the company for Rule 701 exemption. To view, click on the “Warrants” tab at the bottom of the sheet.

It displays the details of the warrants issued from which warrant class, the shareholder’s name, the shareholder type, the grant name, the date it was issued, the amount of securities, the price per share, and the aggregate sales price.

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