Law Blog Category: Pre-Effectiveness Period
Testing The Waters; Regulation A+ And S-1 Public Offerings – Part 2
Crowdfunding Direct Public Offerings
August 21, 2012 in Crowdfunding, Direct Public Offering (DPO), IPO, JOBS ACT, JOBS ACT and Crowdfunding, Pre-Effectiveness Period, Securities Attorneys
As a reminder, on April 5, 2012 President Obama signed the JOBS Act into law. Part of the JOBS Act is the Crowdfunding Act, the full title of which is the “Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure Act of 2012”. The Crowdfunding Act creates a new exemption to the registration requirements under a newly designated Section 4(6) of the Securities Act of 1933, as amended. Although the Crowdfunding Act is, by definition, an exemption from the registration requirements and therefore a new form of private placement, innovative and forward thinking minds have already come up with a method of utilizing the crowdfunding methodology for a public, registered offering.