New SEC JOBS Act rulings

[Jeff Barnes]

I know this is an old thread, but the SEC just lifted its advertising ban today, and soon you will be able to advertise for private money a little easier. There are still several restrictions, but they aren't as severe.

NOTE FROM MOD: I've pulled these new posts out of an old thread. This is a significant new ruling, so I think it deserves its own thread. The old one is here.

[Bryan Hancock]

We just completed a private placement for a new round of financing and are contemplating revising it with language for the new rules. The 60-day period is for commentary and thus the new regulations are not in force YET. So be careful relying too much on things right now.

This does raise several questions too:

1. What cottage industries will form to pre-qualify accredited investors for promoters? This seems to be the major drawback for promoters wishing to advertise so I am sure people will start to provide these services for a fee

2. What happens if you have a fund and wish to advertise separate series with different private placements; one of which allows for advertising and one that doesn't? Do you just need separate private placements or would you need separate operating agreements? Would one pollute the other if they're separate entities with the same partners or subset of partners?

3. What will be considered fraudulent advertising? What additional liability does one assume other than the burden of auditing investors more thoroughly be advertising?

Our securities attorney is going to draft some material that I can hopefully circulate to everyone. This is in preparation for our next Dealmaking Symposium so I will have to get his permission to do so, but I think he'll give it to me. I should know a lot more about the new rules in the next few weeks after visiting with the securities attorney more.