Regulatory Compliance and Elmnts Legal Structure

What is an accredited investor?

Elmnts issues restricted securities to accredited investors. By the SEC, an accredited investor is an individual or entity that meets specific income, net worth, or professional criteria, which typically include having a net worth of over $1 million or an annual income exceeding $200,000 for individuals ($300,000 for couples) for the last two years, with an expectation of the same income level in the current year. Having specific professional licenses in good standing with FINRA member firms can also qualify individuals for being an accredited investor. Through providing proper documentation, often in the form of IRS tax assessments, bank statements, or property appraisals for individuals or brokerage statements and individual accreditation for businesses / trusts, Elmnts screens for accreditation in the KYC process before investors can access the platform.

Operating as a Reg D 506(B) Offering

Our tokenized commodities, such as mineral rights, are offered through private placements under Regulation D. Operating under Rule 506(b) of Regulation D, we can sell securities to an unlimited number of accredited investors and a limited number of unaccredited investors given sufficient expertise. Rule 506(b) does not permit general solicitation, ensuring a more private and controlled offering environment. This structure allows us to maintain regulatory compliance while offering exclusive investment opportunities to a select group of investors.

Regulated Service Providers:

Parallel Markets: Elmnts utilizes Parallel Markets to streamline and secure the Know Your Customer (KYC) and investor accreditation processes. Parallel Markets conducts thorough identity verification checks by analyzing personal data and documentation to confirm the authenticity of each investor's identity. Additionally, they verify the accreditation status of investors, ensuring compliance with regulatory standards.