Limiting investment opportunities to only...

Limiting investment opportunities to only qualified/sophisticated investor (as literally detailed in legislation as being someone certified as having $250k of income for at least two years in a row and or $2m in assets) means that the company doesn't have to jump through big hoops on risk assessments, disclosure statements etc etc

They save a fortune in effort and get to have their funding landed in as few transfers as possible. It's a clear easy win for the company and the higher level investors.

The government made these changes to protect you, just remember that, while the wealthy people get priority access to better opportunities and increase their wealth.

I'll be looking very closely at this company if when they move to production, as soon as financing for production is secured, since that's the big hurdle for a stock like this to jump. I will miss out on those immediate gains, but I'm also going to miss out on the consolidation, the dilution and the general risk that nothing comes of any of it while the company credit raises to pay their salaries for another year.