Shortly after the Securities and Exchange Commission (SEC) adopted the final rule relaxing the prohibition against general solicitation in connection with offerings made pursuant to new Rule 506(c) and Rule 144A, we provided our perspective on various interpretative questions that might arise as issuers and financial intermediaries began to avail themselves of the new offering exemption and the ability to communicate more broadly.
The Interplay of Rule 506(b) and Rule 506(c) -
If an issuer completed a Rule 506(b) offering to its existing investors and then proposes to commence an offering to new investors in reliance on Rule 506(c), must the issuer go back to the existing investors that participated in the Rule 506(b) offering to obtain additional information in order to satisfy verification requirements?
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Topics: Accredited Investors, Bad Actors, Disqualification, Form D Filing, General Solicitation, Investors, Private Offerings, Regulation D, Rule 144A, Rule 506 Offerings, SEC, Social Media
Published In: Communications & Media Updates, Finance & Banking Updates, Science, Computers & Technology 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.
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