| (a) When equity securities underlying transferable
warrants or employee stock options are registered under the Registration
Sections, those equity securities shall thereafter be deemed to be
properly registered in Texas regardless of the time at which the warrants
are exercised by warrant or option holders. Continuous registration
(or annual renewal of registration) of the underlying equity securities
during the life of the warrants or options shall not be required solely
because of the existence of outstanding warrants or options.
(b) Once the distribution process is completed pursuant
to the registration, the issuer or dealer who sold such registered
securities is not required to remain continuously registered pursuant
to the Texas Securities Act, §4004.051, solely because of the
existence of outstanding warrants or options. However, if the issuer
or dealer solicits the holders to exercise their warrants or options,
the issuer or dealer must be registered as a securities dealer if
the transaction does not fall within an exemption other than this
section.
(c) This section is adopted pursuant to the authority
granted by the Texas Securities Act, §4004.001 and §4005.024.
|
| Source Note: The provisions of this §113.9 adopted to be effective January 25, 1980, 5 TexReg 139; amended to be effective October 4, 1984, 9 TexReg 4974; amended to be effective December 6, 1998, 23 TexReg 12293; amended to be effective April 7, 2024, 49 TexReg 2062 |
