123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

170 Companies Conduct Rule 506 Offerings

Profile Picture
By Author: Brenda Hamilton
Total Articles: 62
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

On October 30, 2013, Keith Higgins, the newly appointed Form s-1 Director of the Securities and Exchange Commission’s Division of Corporate Finance, going public provided some useful information about the number of issuers relying upon new Rule 506(c) of the JOBS Act in his recent speech to the U.S. Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on Securities, Insurance, direct public and Investment.

According to Higgins, since Rule 506(c) of Regulation D became effective, more than 170 issuers used the rule to conduct their offerings.

506(c) eliminates the ban on general solicitation and advertising in unregistered offerings conducted under Rule 506 of Regulation D.

Higgins did not distinguish between private companies using Rule 506 in going public transactions and public companies.

According to Higgins, “As of October 18, 2013, there have been 170 new offerings made in reliance on the new Rule 506 exemption that became ...
... effective on September 23, 2013, with approximately $911 million in total amount sold in these offerings. In addition, 44 offerings that commenced in 2013, but before the effective date of Form s-1 the new Rule 506 go public exemption, were subsequently converted to offerings relying on the new exemption. Since the new rules became effective, the average offering size for Rule 506(c) offerings was $6.1 million, as compared to $22.8 million for Rule 506(b) offerings; the median offering size for Rule 506(c) offerings was $1.3 million, as compared to $1.8 million for Rule 506(b) offerings.”

Private placement offerings under Rule 506 are a cost effective and Brenda Hamilton relatively quick way for private companies to raise capital prior to their going public transactions. According to the Securities and Exchange Commission (the “SEC”) .Rule 506 is the relied upon by issuers more than any other exemption from registration. Recently approved Rule 506(c) fundamentally changes the way unregistered offerings may be conducted. While the rule imposes stringent requirements, these requirements are manageable for issuers market maker putting effective compliance strategies into place.

Effective on September 23, 2013, issuers direct public will be eligible to use general solicitation and advertising in Rule go public 506 (c) offerings made to accredited investors, making it easier for issuers to raise capital and obtain the necessary shareholder base for their going public transactions.

About Rule 506(c)

The JOBS Act eliminated the prior prohibition against general solicitation and advertising in Rule 506(c) securities offerings, provided that the securities offered are sold only to accredited investors; however, the issuer is required to take “reasonable steps” to verify that all investors are accredited. After September 23, 2013, Rule 506 offerings conducted without general solicitation are conducted pursuant to Rule 506(b).

Rule 506(c) will allow issuers to sell securities to an unlimited number of accredited investors. Rule 506 does not limit the amount that can be raised and it is available to all issuers regardless of whether they are reporting with the SEC. It is also available to direct public both domestic and foreign issuers. Securities sold in Rule 506(c) offerings are restricted securities.

While companies relying upon the Rule 506 exemption do not have Brenda Hamilton to register their securities, they must file a Form D with the SEC. This includes issuers conducting offerings blog under Rule 506(c). In these offerings, Form D requirements have been expanded to include among other direct public things, disclosure of whether general solicitation and/or advertising is used in the offering. The Form D must be filed within 15 days after the first sale.

For further information about general solicitation and Rule Form s-1 506 and the JOBS Act please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202N, Boca Raton Florida, (561) 416-8956, by email at info@securitieslawyer101.com

This blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. For more information concerning the rules and regulations affecting the use of Rule 144, Form 8K, FINRA Rule 6490, Rule 506 private placement offerings, Regulation A, Rule 504 offerings, SEC reporting requirements, SEC registration on Form S-1 and Form 10, Pink Sheet listing, OTCBB and OTCMarkets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, go public direct transactions and direct public offerings please contact Hamilton and Associates at (561) 416-8956 or info@securitieslawyer101.com. Please note that the prior results discussed herein do not guarantee similar outcomes.

For more information about Rule 506 and going public, please contact Brenda Hamilton, Securities Attorney Telephone,
info@gopublic101.com or visit http://www.gopublic101.com

Total Views: 504Word Count: 775See All articles From Author

Add Comment

Business Articles

1. Single Screw Plastic Extruder Demystified For Manufacturers
Author: ADVAN

2. Leed And Its Impact On Today's World
Author: Agile Advisors

3. Enhancing Safety And Sustainability: Tempgenius Blood Bank And Environmental Monitors
Author: Chris Miller

4. Verg Restoration
Author: PAVEL VERGULYANETS

5. Key Players And Competitive Landscape In The Insect Pest Control Sector
Author: MarketsandMarkets

6. Earthing Rod And Its Types
Author: EARTHING ROD AND ITS TYPES

7. Unveiling Excellence: The Journey Of A Pcb Manufacturer And The Innovations In Rigid-flex Pcbs
Author: Shenzhen Shuoqiang Electronics Co.,Ltd.

8. Exploring Multilayer Pcbs, Aluminum Base Pcbs, And Choosing The Right Pcb Supplier
Author: Shenzhen Shuoqiang Electronics Co.,Ltd.

9. Best Wati Alternatives In 2024 To Improve Customer Engagement
Author: Vilas

10. Revolutionizing Retail Spaces With Architectural Cad Design And Drafting Services
Author: Pavantheaecassociates

11. Professionell Diskning I Stockholm: Ta Hjälp Av Erfarna Diskare
Author: hemstandind i sigtuna

12. Canva Acquires Design Platform Affinity To Bring Professional Design Tools To Every Organization
Author: otis

13. Best Static And Dynamic Website In Mumbai
Author: Techstreat Web Solutions

14. Mastering The Road: The Essential Training For Becoming A School Bus Driver With Northstar Bus Lines
Author: Northstarbuslines

15. Exploring The Potential Of Hydrogen Technologies: A Clean Energy Revolution
Author: yogitamnm

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: