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SDR Drone suspends Regulation A offering due to two historical state securities orders
HLLKSDR Drone, Inc.
SDR Drone, Inc. has suspended its pending Regulation A offering after identifying two administrative orders entered against the company while it operated under the name Hallmark Venture Group, Inc. The first is a 2014 Desist and Refrain Order from California regarding misrepresentations in a prior securities sale that raised over $800,000. The second is a 2018 Consent Order from South Carolina permanently barring the company from the state's securities industry, which included a $30,000 settlement paid to investors and regulators. These orders trigger disqualification provisions under SEC Rule 262 for Regulation A offerings and Rule 506(d) for private placements. The company intends to seek relief through written advice from South Carolina authorities or an SEC waiver request, but there is no assurance that such relief will be granted or obtained in time for the offering to proceed. SDR Drone, Inc. operates in the drone technology industry.