This webinar presents practical guidance in carrying out a compliant Rule 506(c) private offering and understanding the operation, and limitations, of the emergent JOBS Act permitted platforms.
Chicago, Illinois (PRWEB) April 21, 2018
Six years after enactment of the Jumpstart Our Business Startups (JOBS) Act, its impact in reducing regulatory burdens and barriers to capital formation for start-up, small, and emerging growth companies is ripe for consideration.
JOBS Act amendments to the federal securities laws and mandated SEC rulemaking significantly enhanced the ability of small business to raise capital in private offerings to accredited investors, breathed new life into a largely dormant form of limited public offering of up to $50 million via “Regulation A,” established mechanisms for nationwide equity crowdfunding, reduced the regulatory burden for public offerings by newly defined “emerging growth companies,” and altered Exchange Act registration and deregistration requirements for smaller companies.
THE JOBS ACT - A RETROSPECTIVE & A LOOK AHEAD Financial Poise webinar series examines how the JOBS Act has impacted capital formation through private offerings, as well as corporate finance for small business issuers generally, and access to the “IPO” market. In each episode, seasoned practitioner panelists explain not only how the JOBS Act has changed the regulatory landscape to date, but also how small issuers can confidently take advantage of the financing opportunities and cost efficiencies in capital formation it has created. Panelists also discuss possible future modifications to the JOBS Act mandated regulatory structure.
The first episode of the series is Impact of the JOBS Act on Private Offerings and airs on April 26th at 10:00 AM CST (Register Here) and features Moderator Robert Rapp of Case Western Reserve University School of Law. He is joined by Kristofer K. Spreen of Calfee, Halter & Griswold LLP and Jordan Fishfeld of CFX Markets.
This webinar explores what many call “accredited investor crowdfunding,” effectively established by the JOBS Act in mandating the elimination of a ban on general advertising and solicitation in private offerings carried out pursuant to Rule 506 of Regulation D under the Securities Act of 1933, and authorizing the creation of Internet platforms specifically designed to facilitate compliant Rule 506 offerings to accredited investors.
Rule 506 of Regulation D permits private offerings by an issuer in unlimited amounts to an unlimited number of “accredited” investors, as that status is defined in Regulation D, and up to 35 non-accredited investors, provided all conditions of the Rule, and Regulation D generally, are satisfied. Although private offerings under Rule 506 have long been a capital formation option for small business and start-up issuers, a Regulation D prohibition on the use of general advertising or solicitation significantly limited the ability of issuers to identify and connect with interested accredited investors, while at the same time preventing those investors from easily identifying desirable investment opportunities.
The JOBS Act directed the SEC to eliminate this practical barrier to small business capital formation by removing the prohibition on general advertising and solicitation for Rule 506 private offerings provided sales are made only to accredited investors. The SEC responded with the addition of Rule 506(c), which did away with the ban on general advertising and solicitation for offers, but which imposed a stringent issuer verification requirement for accredited investor status of purchasers. Buttressing the expanded Rule 506(c) capital formation alternative, the JOBS Act provided for the creation and operation of Internet platforms for bringing together issuers and accredited investors. This webinar presents practical guidance in carrying out a compliant Rule 506(c) private offering and understanding the operation, and limitations, of the emergent JOBS Act permitted platforms through which private offerings to accredited investors may be accomplished.
The JOBS ACT - A RETROSPECTIVE & A LOOK AHEAD Series is produced by Financial Poise™. Future episodes in the series include "Impact of the JOBS Act on Corporate Finance for Small Issuers" airing on May 24th and “Impact of the JOBS Act on the IPO Market” airing on June 28th. Each episode airs at 10:00 AM CST. All episodes will be available live through West LegalEdCenter and then on-demand following the live premiere.
As with every Financial Poise Webinar, each episode is delivered in Plain English understandable to investors, business owners, and executives without much background in these areas, yet is also valuable to attorneys, accountants, and other seasoned professionals. And, as with every Financial Poise Webinar, each episode brings you into engaging, sometimes humorous, conversations designed to entertain as it teaches. Each episode in the series is designed to be viewed independently of the other episodes, so that participants will enhance their knowledge of this area whether they attend one, some, or all episodes.
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