JOBS Act Series by Brenda Lee Hamilton, Attorney
Hamilton & Associates Securities Lawyers
October 30, 2012
On June 28, 2012, the Securities and Exchange Commission (“SEC”) announced it would miss the July 4, 2012 deadline for adopting rules that would lift the ban on general solicitation and advertising for Rule 506 offerings.
Congressional oversight panel, Chairwoman Schapiro stated to a Congressional oversight panel, “The 90-day deadline does not provide a realistic timeframe for the drafting of the new rule, the preparation of an accompanying economic analysis, the proper review by the commission, and an opportunity for public input.” She indicated that the SEC would be in a position to issue the rules “in the very near future”, most likely sometime this summer.
Companies who go public direct or undertake underwritten or direct public offerings should be aware that the SEC has not implemented the new rules concerning Rule 506 and as such, the existing rules apply including the prohibition against general solicitation and advertising.
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