JOBS Act to Make It Easier and Less Burdensome to Raise Capital in Securities Offerings

more+
less-

On April 5, 2012, President Obama signed the Jumpstart Our Business Startups Act (JOBS Act) into law. The JOBS Act is intended to make it easier and less burdensome for companies to raise capital through securities offerings, including IPOs and private offerings. Some of the JOBS Act’s provisions became effective immediately, while other provisions require rulemaking by the SEC under deadlines that vary from 90 to 270 days after enactment of the law. Appendix A to this legal alert contains a chart that sets forth the effective dates or rulemaking deadlines for the various provisions of the JOBS Act Overview.

- Effective upon enactment of the JOBS Act, a new category of companies “emerging growth companies” – will be able to take advantage of relaxed and less burdensome SEC rules in connection with their IPOs and subsequent SEC disclosure obligations for a period of up to five years after their IPOs.

- The prohibitions on general solicitation and general advertising in connection with Rule 506 offerings solely to “accredited investors” and Rule 144A offerings to “qualified institutional buyers” will be eliminated by SEC rulemaking within 90 days after the date of the enactment of the JOBS Act.

Please see full alert below for more information.

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

Written by:

Published In:

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.

© Sutherland Asbill & Brennan 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 »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×