On October 23, the Securities and Exchange Commission voted unanimously to propose new rules that would permit companies to offer and sell securities through “crowdfunding.”
On October 24, 2013, the House Subcommittee on Capital Markets and GSEs will hold a hearing on “Legislative Proposals to Reduce Barriers to Capital Formation.”
On October 23, 2013, the United States Securities and Exchange Commission (the “SEC”) is expected to vote on a SEC proposal that would ease investor verification requirements under the crowdfunding rule.
Recently, I filed Advance Comments with the Securities and Exchange Commission to share a tech company’s perspective on how Reg A+ could be drafted to help growth companies like Fallbrook Technologies.
On the same day that the SEC proposed rules that may make capital raising easier for companies by repealing the ban on general solicitation for private offerings, the SEC also proposed rules that may make it much more difficult to raise capital.
Most people nowadays, especially budding entrepreneurs, are familiar with the concept of crowdfunding and crowdfunding platforms such as Kickstarter and Indiegogo.
On September 23, 2013, the JOBS Act rules that roll back the 80 year old ban on the use of general advertising and public solicitation by issuers of unregistered securities will be a reality. At least it will be a reality for fund managers that do not rely on an exemption from the Commodity Futures Trading Commission.
Rules Eliminating the Prohibition On General Solicitation for Rule 506 and Rule 144A Offerings Become Effective September 23, 2013
The final rules for eliminating the prohibition against general solicitation and general advertising in Rule 506 and Rule 144A offerings will become effective on September 23, 2013, which is 60 days after the July 24, 2013 date they were published in the Federal Register.
Many commenters have questioned whether the passage of the JOBS Act has had a tangible impact on the IPO market.
New SEC Rules to Lift Prohibition On General Solicitation and General Advertisements in Certain Private Placement Transactions
On July 10, 2013, the Securities and Exchange Commission approved final rules that were required by Section 201(a) of the JOBS Act.