Dennis McCarthy – (213) 222-8260 – email@example.com
Well, I’m calling it progress.
The SEC has submitted for comment some revised rules under the recently enacted JOBS Act.
The proposed rules would permit offerings of securities which are exempt from registration, commonly known as private placements, to be marketed more widely than is currently possible.
The current rules limit the number of potential investors that can receive the offer. Under the proposed rules, those limits are removed.
What remains generally the same are the rules defining who can invest. They must meet tests to qualify as accredited investors.
That’s why I call it progress as long as something like the proposed rule gets adopted.
Today, companies and their agents raising capital have the technology to reach out to just about every potential investor on the planet, so why not?
At the same time, restricting investors to those who are accredited maintains some protection for unsuitable investors.
There’s more progress needed but this is a step. The SEC press release is available at the link below.
As always, please contact me to help your company raise equity or debt or complete M&A deals.
SEC Press Release: http://www.sec.gov/news/press/2012/2012-170.htm