Film Investors and the S.E.C.
I am currently producing an independent film which has been financed by multiple investors; five long-time friends of mine. The deal we have in place is that they will each receive a share of the gross based on the percentage they invested into the production budget (e.g. Inverstor A financed 25% of the budget, they get 25% of the gross). With having multiple investors versus the traditional single investor, does that fall into SEC territory where the film is now a public offering of sorts because I have more than one investor? Or does that apply only if they are investing in my production company itself and not a singular product (the film) I'm developing. Any information would be appreciated.