You want to expand an established business because your company has done well but needs additional capital to take it to the next level. Where do you go to get the money? Help is on the way for smaller companies who need a public offering and develop a market for these securities.
The President has signed into law the new Jumpstart Our Business Startups (JOBS) Act, which ushers in a series of reforms to facilitate capital formation by start-ups and other small or emerging enterprises by easing securities law compliance requirements. The principal reforms range from expanding sales techniques for certain private placements, to simplifying initial public offerings for “emerging growth companies”, to reducing some of the ongoing compliance obligations for emerging growth companies during the early stage of status as a public company.
The JOBS Act will enable businesses to use the Internet to raise up to $1 million in small individual investments, known as “crowdfunding.” And at the same time, larger companies can now offer as much as $50 million worth of shares to the public under a new protocol that may vastly decrease the SEC’s review and comment period.
The act is also expected to have a positive effect on the market for initial public offerings because some companies staging IPOs will now be exempt from SEC regulations for the first five years after going public.
The Spencer Law Firm is excited about the JOBS Act and the ability to streamline the public registration process. Our experience in the securities industry includes representing the private issuer client in all phases of the public registration. The Spencer Law Firm has served as issuer’s counsel with a specific emphasis on emerging growth companies and their first tier financing.
The Spencer Law Firm has been counsel of record in numerous private financing and capital formations, with a structured plan of later public registration in the areas of intellectual property and technology, patented inventions, oil and gas companies, mining companies, restaurant chains and franchising businesses. The Spencer Law Firm was lead counsel on a capital formation project with Wall Street underwriters to negotiate terms and develop a concurrent $75,000,000.00 NASDAQ/Bolsa Valor offering for an offshore client.
This firm was also lead counsel in closing and working with the SEC on the merger/acquisition of two publicly traded mining companies. The Spencer Law Firm was lead counsel for broker-dealers in securities and compliance issues and have directed due diligence efforts in underwriting a $50,000,000 REIT public offering as counsel for the selling manager. We have been primarily responsible for contact with the SEC, FINRA and the state security commissions on various registrations and their various comments regarding same.
Please contact us today at our toll-free number, (888) 237-4529, for a consultation that can answer your questions related to public capital formation.