News & Events

News & Events

10.2.2013

Amending Rule 506 — Lifting the Ban on the General Solicitation of Investors

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The Securities and Exchange Commission (“SEC”) recently enacted amendments to Rule 506 (“the Rule”) promulgated under the Securities Act of 1933, as amended, (“the Securities Act”). These amendments were required by the Jumpstart Our Business Startups Act of 2012 (“the JOBS Act”). As a result of the change, entrepreneurs have the ability in some circumstances to publicly advertise that they are fundraising for their businesses, which was previously impermissible under the Rule. However, the SEC also added new disqualification provisions related to prior bad acts by certain individuals. These changes represent a significant evolution in the process by which securities may be sold in private placements.

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For more information, please contact the Corporate Finance and Securities Group at Lane Powell:

206.223.7000 Seattle
503.778.2100 Portland
lanepowellpc@lanepowell.com