La. Admin. Code tit. 19 § VII-2109

Current through Register Vol. 50, No. 11, November 20, 2024

Section VII-2109 - Application Procedures for Co-Investment

A. The summary application must contain but not be limited to:

1. applicant information:

a. venture capital fund name;

b. address;

c. LEDEC certification number;

d. telephone number;

2. project firm information:

a. name of business;

b. address (postal and physical);

c. phone number;

d. year established;

e. state chartered in;

f. legal structure of business;

g. IRS tax number;

h. product or service;

i. headquarters location;

j. location of all production and research and development facilities;

k. list any pending litigation;

l. list any bankruptcy or insolvency filings;

3. owner/manager information:

a. name;

b. address;

c. title;

d. Social Security number;

e. percent of ownership;

f. annual compensation;

g. list any pending litigation;

h. list any bankruptcy or insolvency filings;

4. use of funds:

a. purpose;

b. amount;

5. securities given in exchange for investment:

a. list types of securities to be issued in this round of financing to all investors with any terms and/or conditions attached thereto;

6. equity information:

a. list all equity investors with numbers of shares owned, type of shares owned, dollar value of investment and date of investment;

b. total shares authorized by class;

c. total shares outstanding by class.

B. A business plan that contains but is not limited to:

1. business goals and earnings projections and potential return to investors;

2. market analysis:

a. description of total market;

b. industry trends;

c. target market;

d. competition;

3. products or services:

a. description of product line;

b. proprietary position: patents, copyrights and legal and technical considerations and ownership of same;

c. comparison to competitors' products;

4. manufacturing process (if applicable):

a. materials;

b. sources of supply;

c. production methods;

5. marketing strategy:

a. overall strategy;

b. pricing policy;

c. sales terms;

d. method of selling, distributing and servicing products;

6. management plan:

a. form of business organization;

b. board of directors composition;

c. officers: organization chart and responsibilities;

d. resumes of key personnel;

e. staffing plan/number of employees;

f. facilities plan/planned capital improvements;

g. operating plan/schedule of upcoming work for next one to two years;

7. financial data (for existing firms):

a. financial history (five years to present);*

b. three-year financial projections (first year by quarters; remaining years annually):

i. profit and loss statements;

ii. balance sheets;

iii. cash flow chart;

iv. capital expenditure estimates;

c. explanation of projections;

d. key business ratios;

e. explanation of use and effect of new funds;

f. potential return to investors compared to competitors and industry in general;*

8. financial data for startup firms:

a. three-year financial projections (first year by quarters; remaining years annually):

i. profit and loss statements;

ii. balance sheets;

iii. cash flow chart;

iv. capital expenditure estimates;

b. explanation of projections;

c. key business ratios;

d. explanation of use and effect of new funds;

e. potential return to investors compared to competitors and industry in general;*

9. schedule of debt:

a. to whom;

b. date opened;

c. original balance;

d. present balance;

e. payment schedule;

f. date of maturity;

g. rate;

h. collateral;

i. terms of convertibility;

j. list all liens against the project firm and related firms;

10. list of trade creditors/suppliers:

a. creditor name;

b. address;

c. date opened;

d. high credit;

e. balance;

f. terms;

11. collateral offered:

a. type and description;

b. present market value:

i. appraisals no more than 90 days old at time of application;

c. present balance owed;

d. total value of collateral;

e. source of repayment:

i. primary source;

ii. secondary source;

f. federal and state tax status:

i. date of current tax status;

ii. date of last audit;

iii. deficiencies assessed/proposed.

*All financial statements must meet Generally Accepted Accounting Practices (GAAP).

La. Admin. Code tit. 19, § VII-2109

Promulgated by the Department of Economic Development, Economic Development Corporation, LR 15:461 (June 1989).

AUTHORITY NOTE: Promulgated in accordance with R.S. 51:2331.