The Jumpstart Our Business Startups Act (the "JOBS Act"), signed into law by President Obama on April 5, 2012, seeks to encourage economic growth by relaxing some restrictions on capital formation and by improving access to capital.
In one provision of the JOBS Act that will be significant to start-up and growth companies, it amends Section 4 of the Securities Act of 1933 so that offerings solely to "accredited investors" under Rule 506 of Regulation D will not be deemed public offerings as a result of general advertising or general solicitation.
The JOBS Act gives the Securities and Exchange Commission 90 days to issue rules effectuating this provision. Until then, the provision is not yet effective and the general solicitation restriction remains applicable to Rule 506 offerings.
For more information, contact William McCartan with Bradley & Riley PC at firstname.lastname@example.org.
Categories: Business Law