Description
Avoid potential pitfalls when raising capital by learning how to utilize SEC Rule 506(c) and understanding the key elements of the crowdfunding regulation.The Jumpstart Our Business Startups Act (the JOBS Act) became law on April 5, 2012, and was designed, in part, to enhance the raising of capital, especially by small or emerging businesses. As a result of the JOBS Act, the SEC promulgated new rules to facilitate capital formation. While these new rules enhance opportunities to raise capital, they create certain obstacles and pitfalls, and they do not eliminate the traditional methods in which companies have sought capital. This material will explore capital raising techniques authorized by the JOBS Act and also examine the interplay between these techniques and the traditional methods of capital formation which continue, for many small and midsize companies, to be the preferred way of seeking capital. The effects of the JOBS Act on public company requirements and the issues raised by the current COVID19 pandemic will also be discussed.
Date: 2021-01-26 Start Time: End Time:
Learning Objectives
Traditional Private Placements Are Alive and Well
• Common Pre-JOBS Act Exemptions From Registration
• Regulation D • Rule 506
• Disclosure
• General Advertising and Public Solicitation Prohibited
• Integration of Offers
• How Do You Lose the Exemption?
• Resales of Restricted Securities
The JOBS Act • General Solicitation Now Permitted
• SEC Rule 506(c) • How Often Used?
• The Challenge of Verifying Accredited Investor Status
• Rule 506(c) Does Not Eliminate the Traditional Private Placement
The JOBS Act • Crowdfunding
• Section 4(a)(6) of the Securities Act
• SEC Regulation Crowdfunding Rules
• Key Elements of the Crowdfunding Rules
New Approaches to Capital by Emerging Growth Companies
• Emerging Growth Company Defined
• Enhanced Public Offering Process
• Reduced Compliance Obligations
Other Issues of Note
• Regulation A Offers
• Registration and Deregistration for Public Companies
• The Effect of COVID-19 in Capital Formation
CLE (Please check the Detailed Credit Information page for states that have already been approved) ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Michael D. Waters-Jones Walker LLP
