Regulation Crowdfunding requires intermediaries to provide educational materials to investors whenever they open an account. The materials are required to be in plain language and communicate many aspects of investing and interacting with the portal effectively. Please note that regulations and our own internal processes and procedures may change from time to time, so you will be required to indicate that you have read and understand the current version of this document each time you begin to pursue an investment in an offering through our portal. Please let us know immediately if you have any questions or if any part of the following information is unclear to you. The process for reviewing the offer, making a purchase, and receiving your securities is as follows: § Create your account. All potential investors must establish an account with Sprowtt with current contact information. § Verify your email address. We will send you a confirmation email to the email address you provide to ensure proper communication. § Verify your income and net worth. Crowdfunding investments are limited based on your income and net worth, and it is up to you to self-verify that you have not exceeded the allowed investments during the 12-month period preceding the date of your current transaction. Sprowtt will know how many investments you made and the total amount of those investments through our portal, but we are not aware of investments you may have made through other portals. § Review the “tombstone” ads. You can review the available offerings, filtered and sorted by a variety of criteria, including category or industry, by stage of deal, size of deal, or geographically (for example, bio-tech deals or companies close to Sunnyvale, CA). § Indicate interest in an offering. For each offering in which you are interested, you need to click the “Buy Now” button to gain access to the details of the offering. Once you indicate an interest, your contact information will be provided to the Issuer so they can follow up with you. § Review the details of the offering. Download and review in detail the offering documents, business plans, business overviews, financial projections, pitch decks, and/or investor videos. Please note that we track the materials you have accessed and provide that information to the Issuer. They will know, for example, when you downloaded their business plan, and if you watched any videos they provided. Remember, you and you alone must decide whether to invest, and if so, how much to invest, so do your homework! § Communicate with the Issuer. Although not required, we strongly recommend that you communicate directly with the Issuer to answer any questions you may have about the offering. § Talk with your advisors. We also strongly recommend that you share information about the offering with your attorney(s), CPAs, investment advisors, and other professionals. § Make the investment. You can make investments only through the portal. You will need to send your funds to the escrow bank for the benefit of the company in which you are investing. You will be able to see online when those funds have been received into escrow. Once the funds are received into escrow, they are held for a minimum of three (3) days before being made available to the Issuer. If the Issuer is making a “minimum-maximum” offering, the funds will not be available to them until the minimum amount of the offering is raised. All documents are digitally signed, and no physical paperwork is ever exchanged, with the exception of the shareholder certificates (see below). And if you change your mind about the investment within three (3) days, you can rescind your investment by notifying the escrow agent, in which case the escrow agent will promptly return your funds without interest or deduction therefrom. § Receive your shareholder certificates. LLC membership interests or stock share certificates will be issued directly by Sprowtt clearing contractors and transfer agents, bonded and insured, to each investor upon close of the offering. In addition, digital copies are stored on our system for five (5) years. § Stay in touch. Keep track of the companies in which you invest by signing into the portal and reviewing their progress. The Issuers may choose to send emails through the Sprowtt portal to you and other investors, but they are not required to do so.
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