Kalshi discloses $1.5 billion equity offering in SEC filing

Kalshi disclosed a $1.5 billion equity offering in a Form D filed with the SEC. Kalshi sold $1.12 billion under the offering. The offering began in April. The first sale occurred on April 3. About $380 million remains to be sold. The Form D lists 71 investors. Kalshi identified the securities as equity. Kalshi said it is relying on Rule 506(b) of Regulation D. That exemption allows certain private offerings without SEC registration, subject to certain requirements. Kalshi announced a $1 billion Series F funding round in early May at a $22 billion valuation. The Form D does not state whether the reported offering is the Series F round. Kalshi had not responded to a request for clarification by publication. Kalshi also faces legal challenges from US states over its offerings. In mid-August, a Washington state judge ordered Kalshi to stop offering a broad range of event contracts in the state. The judge rejected Kalshi’s argument that federal law overrides the state’s gambling laws.