SEC increases Rule 701 disclosure threshold and issues concept release on updating compensatory offering rules

The SEC recently amended Securities Act Rule 701, which provides a registration exemption for securities sold by non-reporting companies to their employees and other covered persons under compensatory arrangements. The amendment revises Rule 701(e) to increase from US$5 million to US$10 million the limit on the aggregate sales price or amount of securities a company may sell during any consecutive 12-month period without having to deliver additional disclosure to offerees. The amendment became effective on July 23. Companies may rely on the increased disclosure threshold for offerings that were ongoing when the amendment became effective, as well as for offerings they initiate after the effective date.

Please see full Publication below for more information.

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

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.

© Hogan Lovells | Attorney Advertising

Written by:

Hogan Lovells
Contact
more
less

Hogan Lovells on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.