MEDIA GLOBO Builds Toward Colorado Equity-Crowdfunding Law
MGLO to Launch First Public Colorado Corporation Crowdfunding Website
DENVER, CO - ( April 15, 2015 ) - The MEDIA GLOBO Corporation [OTC: MGLO] announced today that the Company seeks to become the first publicly-held equity-crowdfunding service provider and "on-line crowdfunding intermediary" in the State of Colorado.
About the Colorado Crowdfunding Act
The MEDIA GLOBO announcement follows enactment of Colorado House Bill 15-1246, entitled the "Colorado Crowdfunding Act," and signed into law by Governor John Hickenlooper as effective on Monday, April 13, 2015. Under the new law an entirely new market and business opportunity will be created for Colorado small businesses by opening up the potential pool of investors that startups can approach for funding. Under previous law only accredited investors can buy stock in privately-held companies and such investors must make at least $ 200,000 annually and have a $1 million net worth. Under the Colorado Crowdfunding Act any Colorado resident will be able to invest up to $ 5,000 per year in private startup companies and small businesses. The Colorado law requires both companies and investors to be based in the state and 80 percent of the proceeds must be spent in the State of Colorado. The law limits companies to raising $ 1 million per year - or $ 2 million per year if they provide audited financial statements.
The law also defines the role of online intermediaries like MEDIA GLOBO: "Current securities law restricts businesses' ability to raise capital through crowdfunding, which is the raising of money on-line through small contributions from a large number of investors. The bill enacts the 'Colorado Crowdfunding Act' to facilitate crowdfuding by authorizing on-line intermediaries to match a Colorado investor with a Colorado business that wishes to sell securities (an "issuer") pursuant to a simplied regulatory regime, including the following: On-line intermediaries cannot offer investment advice or handle investor funds or securities, and must: maintain records of securities transactions, which are subject to inspection by the division of securities; and be compensated only by a fixed amount for each offering, a variable amount based on the length of time that the securities are offered by the on-line intermediary, or a combination of the fixed and variable amounts." MEDIA GLOBO expects to implement a combination of fixed and variable fees for providing clients with a menu of online services.
Further, "Crowdfunding cannot begin until the securities commissioner adopts rules to implement the Act." The bill's legislative spnsors indicate that the Colorado Securities Commission will write all final rules implementing the measure, and most legal experts suggest that equity crowdfunding should begin in Colorado by the first quarter of 2016.
About the JOBS Act
The Colorado Crowdfunding Act comes three years after President Barack Obama signed into law the JOBS (Jumpstart Our Business Startups) Act on April 5, 2012, which allowed equity crowdfunding, but remains in limbo, waiting on the U.S. Securities & Eschange Commission to create federal rules. While specific rules allowing equity crowdfuding may have stalled at the SEC, as of April, 2015 eighteen (18) states have intrastate crowdfunding exemptions in place and twenty-one (21) states are in various stages of enacting or considering sponsored legislation regarding similar intrastate crowdfunding rules.
For more visit the MEDIA GLOBO website at: www.mediaglobocorp.com , and see "Research."
More announcements are expected.
SAFE HARBOR STATEMENT
INCLUDED IN THIS PRESS ANNOUNCEMENT AND REFERENCED HEREUNDER ARE THE MEDIA GLOBO CORPORATION FORWARD-LOOKING STATEMENTS AND PROJECTIONS WITHIN THE MEANING OF SECTION 271 OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE AC T OF 1934, AS AMENDED. ALTHOUGH THE COMPANY BELIEVES THAT THE EXPECTIONS REFLECTED IN SUCH FORWARD-LOOKING STATEMENTS ARE REASONABLE, IT CAN GIVE NO ASSURANCE THAT SUCH EXPECTATIONS REFLECTED IN SUCH FORWARD-LOOKING STATEMENTS WILL PROVE TO BE CORRECT, NOR RELIED UPON FOR INVESTMENT PURPOSES.