At long last, the Securities and Exchange Commission (SEC) has voted 4-1 to approve a rule allowing private offering issuers and sponsors to publicly advertise their Regulation D, Rule 506 private securities offerings, so long as certain requirements are met. This announcement comes over a year after passage of the JOBS Act, a key portion of which called on the SEC to adopt rules implementing a repeal of the long-standing prohibition against general solicitation and advertising in Regulation D offerings.
Companies who can limit their offerings to accredited investors (visit https://www.ericperkinslaw.com or the Perkins Law Channel on YouTube for more information on accredited investor classification and other Regulation D compliance issues) and stay within the frameowrk of Rule 506 of Regulation D now can unleash the creative genius of their marketing departments to promote their offering programs and their brands. With an estimated $1.6 trillion raised in private offerings under the old regime, one can imagine how much more will be raised over the next year as a result of these new rules.
Perkins Law offers flat fee service packages for both Regulation D sponsors and investors. Email or call us to discuss your capital-raising plans and how to leverage these new rules to benefit your business.