Offering Securities By General Announcement Without Registration

Yesterday, the Securities and Exchange Commission issued this announcement regarding its settlement with two advertising executives who launched a campaign to buy a beer company through a solicitation of investors on Facebook and Twitter without first registering with securities regulators and making the necessary disclosures.

It must be the week for beer offerings because just the day before one of my partners asked me about a general announcement in a newspaper offering membership interests in a limited liability company. According to the announcement, funds would be used for constructing, furnishing and operating a “brewpub” style restaurant. My partner’s question was, of course, whether someone can actually make a general announcement of a securities offering without registration under the Securities Act of 1933 or qualification under the Corporate Securities Law of 1968.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Administrative Agency Updates, Business Organization Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Allen Matkins Leck Gamble Mallory & Natsis LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »