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As my regular readers (hi mom!) know, I’ve spent a lot of time blogging about Crowdfunding under the JOBS Act.  They would also know that this equity-offering form of Crowdfunding is different from the crowdfunding used by Kickstarter and Indiegogo, where artists and inventors raise money from crowds of donors, rather than investors. A quick overview for the uninitiated:  artists, musicians, inventors and entrepreneurs all can use Kickstarter or Indiegogo to raise funds for…
As regular readers know, we deal with some pretty wonky securities law issues here at the Securities Compliance Sentinel.  It’s some serious stuff – sentinels are rarely irreverent fellows.  Speaking of sentinels, attorney Bob Kohn filed a rather novel amicus brief in the Justice Department’s lawsuit against Apple and some book publishes which alleges price fixing for e-books.  And by “novel” I mean “graphic novel“.  This has nothing to do with things like Item…
Last week, a federal judge declared that Delaware’s lawallowing Chancery judges to preside over secret arbitrations was unconstitutional.  The Delaware Coalition for Open Government challenged the law on the grounds that a judge-presided arbitration functioned essentially like a non-jury trial before a Chancery Court judge, and Judge McLaughlin agreed, noting, “Because it is a civil trial, there is a qualified right of access and this proceeding must be open to the public.” The purpose…
Yesterday, the SEC proposed rules to implement Section 201(a) of the JOBS Act, which mandates the elimination of the prohibition against general solicitation in Rule 506 and Rule 144A offerings.  The proposed rule answered the major questions securities professionals were asking about these reforms:  would the new Rule 506 replace the old (no), would “reasonable steps to verify” require issuers to comply with strict guidelines (no again), and would it take the SEC over 60…
In an unshocking move, the SEC decided to delay its Open Meeting on the changes to Rule 506 of Regulation D and Rule 144A required under the JOBS Act (which will allow for general solicitation of securities sold pursuant to those rules) until next week.  Notably, in the notice announcing next week’s meeting, they changed the wording of the agenda ever so slightly, from “The Commission will consider rules to eliminate the prohibition against general…
If you look around Philadelphia, you can see signs of a vibrant, growing city.  Neighborhoods long lost to urban decay and lost manufacturing jobs are finding new life as homes to the growing creative class of artists and entrepreneurs.  Philadelphia is in the nascent stages of a renaissance.  New businesses are created every day, and growing enterprises that might have left the city a decade ago are reinvesting in their hometown in growing numbers. …
It’s a rare day when I can say, with unadulterated smugness, “I was right.”  So today is doubly rare, as I can say it twice. Manchester United – the world’s most valuable sports team, adored by estimated 659 million fans, winner of numerous Premiership titles, FA Cups, and Championship League titles– is going public.  In America.  As an Emerging Growth Company. And I called it.  Back in May, I said that European…
In a move that surprised absolutely no one, SEC chairwoman Mary Schapiro stated in testimony before a House Subcommittee that the SEC would not make the July 4th deadline set by Congress to amend Rules 506 and 144A.  Mary was not quite contrary here – I don’t think anyone expected the SEC to make this deadline (And Ms. Schapiro told Congress that they couldn’t do it before the bill passed, but did they listen?).  As I’ve stated…
It’s been two months since President Obama signed the JOBS Act into law (ironically, the jobs data since then have been less than great).  My, how time flies when you watch every move the SEC’s Division of Corporate Finance makes!  Or, in this case, doesn’t make. As you might recall, some of the JOBS Act’s reforms were immediate:  already about a dozen Emerging Growth Companies have taken advantage of confidential registration statement review, and…
I did another interview with LXBN TV this afternoon.  In some ways, it went better than the first.  Instead of an opening shot where I look like I’m trying to find the fastest escape route out of the imminent stammer-fest, now I just look really, really sad, like someone just yelled at a puppy.  And instead of a constantly perturbed glare throughout the interview, this video sees me sporting an awkward half-smile.  Improvements!!  At this rate, I’ll be hosting the Today…