<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".06" citation="COMAR 24.05.03.06" title_num="24" subtitle_num="05" chapter_num="03" heading="Investment.">
  <paragraph num="A.">
    <text>Investment. Within 30 calendar days after the date of an initial certificate, the applicant shall make the investment in the qualified Maryland biotechnology company.</text>
  </paragraph>
  <paragraph num="B.">
    <text>Investment Notice. Within 10 calendar days after the date on which a qualified investor makes the investment in the qualified Maryland biotechnology company, the applicant shall provide to the Department a notice and proof of the making of the investment on a form or forms prescribed by the Department.</text>
  </paragraph>
  <paragraph num="C.">
    <text>Evidence of Investment.</text>
    <paragraph num="(1)">
      <text>The investment notice shall be supported by evidence of the investment and of the equity interest issued or acquired in consideration of the investment. This evidence shall include an affidavit, in a form approved by the Department, of the applicant or its principals affirming under penalty of perjury the facts constituting the making of the investment including:</text>
      <paragraph num="(a)">
        <text>The date of the investment;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The amount of the investment;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Proof of the receipt of the investment by the qualified Maryland biotechnology company;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>A complete description of the nature of the ownership interest in the equity of the qualified Maryland biotechnology company acquired in consideration of the investment; and</text>
      </paragraph>
      <paragraph num="(e)">
        <text>For convertible debt, acceptable evidence that the convertible debt instrument has been canceled and proof of conversion of the convertible debt into an investment.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>The Department may require additional documentation reasonably necessary to satisfy the Department as to the making of the investment and the nature of the ownership interest, including but not limited to cancelled checks, deeds, affidavits of officers or partners of the qualified Maryland biotechnology company, stock certificates, assignments, copies of amendments or supplements to shareholder or partnership agreements, executed investment agreements, securities law compliance filings, certifications of book entries, and reports of auditors.</text>
    </paragraph>
  </paragraph>
</regulation>