SEC Grants Regulation M Exemption in Connection with Repurchase Program

The SEC granted exemptions from Rule 102(a) ("Activities by Issuers and Selling Security Holders during a Distribution") of Regulation M ("Distributions") under certain conditions to a renewable energy company. The exemptions pertain to repurchases by the company of its shares under a proposed share repurchase plan, and the conditional exemption permits the company to repurchase shares of its common stock under the repurchase program while engaged in a distribution of shares of its common stock.

Additionally, the conditional exemption is subject to the renewable energy company's (i) termination of its repurchase program during the distribution of its common stock if a secondary market for its common stock develops; and (ii) repurchasing of shares of its common stock under the repurchase program at a price that does not exceed the then-current public offering price - a price directly and mechanically linked to the net asset value of its common stock.