Regulation A+ 2019 Q&A – Securities Lawyer 101

Regulation A provides an  exemption from registration that can be used in combination with a Rule 506 private placement, a direct public offering and/or initial public offering by a private company or company seeking to go public. Since Regulation A was… Read More

The 3(a)(10) Exemption from SEC Registration

Securities Lawyer 101 Blog Section 3(a)(10) of the Securities Act of 1933, as amended (the “Securities Act”) exempts the offer and sale of securities in certain exchange transactions from the registration statement requirements. In SEC Legal Bulletin 3A, the Securities and… Read More

Rule 506(c) Offerings: Everything You Need to Know

Issuers can advertise their securities offerings under Rule 506(c) of Regulation D. Upon its implementation in 2013, Rule 506(c) removed the 80-year prohibition against the general solicitation and advertising of private placements.

Regulation A Offerings – Blue Sky Requirements

Regulation A, also known as Regulation A +, provides an exemption from registration for sales of up to $50 million in a 12 month period. The exemption provided by Regulation A + offers numerous benefits to issuers seeking… Read More

Regulation A Investor Bulletin Issued by SEC

In April of this year, NASDAQ submitted a proposal related to the Regulation A Offering Exemption which would require any Company listing on NASDAQ in connection with an offering under Tier 2 of Regulation A.

SEC Updates PAUSE List of Firms Using Inaccurate Information

The SEC has updated its PAUSE list (Public Alert: Unregistered Soliciting Entities), “adding 23 soliciting entities, two impersonators of genuine firms, and 12 bogus regulators.” This is a great resource for investors, as it will help you to… Read More

Our Comment to the SEC Regarding Rule 211 (15c2-11) – Sponsoring Market Makers

Blue Sky, Form 211, Regulation A, Regulation A Secondary Sales, Regulation A Tier 2, Regulation A+. Tier 1, Reporting Company, Rule 15c2-11, SEC Reporting, SEC Reporting Requirements.

SEC Proposes Rule 15c2-11 Changes – Form 15c-211 Attorneys

The object of the new proposed changes to Rule 15c2-11 is the same as it was in 1998 and 1999:  to cut back on penny stock fraud, which may now be even more rampant than it was 20 years ago. 

SEC Adopts New Rule to Modernize Regulation of Exchange-Traded Funds

In addition to their new rule allowing companies to “test the water“, the SEC has announced another new rule regarding Exchange-Traded Funds (ETFs). The SEC says they are modernizing the regulation of ETFs “by establishing a clear and… Read More

SEC: Facebook to Pay $100M for Misleading Investors

After the election of 2016, a lot was made of “fake news” and Facebook’s role in spreading it. Part of this large controversy involved the consulting firm Cambridge Analytica, which was run by Steve Bannon. Cambridge Analytica used… Read More

Cry Me A River – DTC Chills & Global Locks – Going Public Attorneys

Securities Lawyer 101 Blog The Depository Trust and Clearing Corporation (“DTCC”), through its subsidiaries, provides clearing, settlement and information services for securities.  DTCC’s subsidiary, the Depository Trust Company (“DTC”), was created to improve efficiencies and reduce risk in… Read More

Popular Messaging App Kik Shuts Down, Blames SEC

The popular messaging app Kik raised over $100 million in 2017 in its Initial Coin Offering (ICO). Then, in June of 2019, the SEC sued them because they did not register the offering, as required by United States… Read More

South Florida Securities Lawyer,Jan Atlas Charged with Fraud

Jan Atlas, a 74-year old attorney based in Ft. Lauderdale was charged on September 17, 2019, with “one count of securities fraud, in violation of Title 15, United States Code, Sections 77q(a) and 77x, in Case No. 19CR60258. … Read More

Investor Relations and Rule 506 (c) Offerings

Rule 506(c) of Regulation D. Rule 506(c) removes the 80-year prohibition against the general solicitation and advertising of private placements.

Director Bill Hinman Expands on SEC’s Approach to Crypto

According to Forbes, Bill Hinman partook in a fireside chat at Cardozo Law School this week, where he “covered a range of topics related to the regulation of digital securities.” Hinman told Cardozo that the SEC continues to… Read More

What is an Annual Report on Form 10-K? Securities Lawyer 101

Form 10-K attorneys generally draft the narrative portion of the annual report for publicly traded companies.  The Form 10-K report is the most comprehensive of the year.  This is because Form 10-K contains the issuer’s audited financial statements.  The annual… Read More

Smaller Reporting Companies (SRCs) – Emerging Growth Companies

adopted a system of disclosure rules for issuers who fall into the category of a smaller reporting company.   The “smaller reporting company” category includes generally, companies that enter the SEC reporting system with less than $75 million in common equity public float.

Will Going Public Help Me Raise Capital? Going Public Attorneys

Going public is frequently used as a stepping stone by companies seeking to raise capital.

What Is Required In a Form S-1 Registration Statement?

Securities Lawyer 101 Form S-1 registration statements are the most commonly used registration statement form.  It allows issuers to register various types of offerings and the form can be used by both public and private companies engaged in going… Read More

SEC Adopts Rule 163B to Allow All Issuers to “Test-the-Waters”

The SEC has just adopted Securities Act Rule 163B, which will allow all issuers to “gauge market interest in a possible initial public offering or other registered securities offering through discussions with certain institutional investors prior to, or… Read More

What is a Form 8-A Registration Statement? Securities Lawyer 101

Form 8-A is a shortened type of securities registration statement under the Securities Exchange Act that registers a class of an issuer’s securities. Form 8-A allows short form disclosures.

Ross Mandell Seeks More Info Through FOIA

Ross Mandell was the founder of Sky Capital Holdings, Ltd., a venture capital firm and brokerage. He is currently serving a 12 year sentence for defrauding investors of over $100 million from 2001 to 2006. His case was… Read More

Selling Stockholder Disclosures in Form S-1 Registration Statements

Form S-1 requires the registrant to provide specific selling stockholder disclosures.  These selling stockholder disclosure requirements in Form S-1 are set forth in Item 507 of Regulation S-K

The Evolving Regulatory Complexity Surrounding Marijuana, CBD, and Vaping

According to Newsweek, the Trump administration is currently “preparing a complete ban on flavored e-cigarettes amid a rising number of vaping-related illnesses and deaths, but officials are leaving out a key part of the problem: marijuana products.” Whether… Read More

The First SEC-Qualified Token Offering Raises $23M

Muneeb Ali, the founder of Blockstack PBC, released a blog post this week reporting that his company has raised $23 million in public token offerings. This is significant because Blockstack PBC was the first crypto company to gain… Read More

Shell Shocked – FBI Uses Receivership Shell In Sting

The Securities and Exchange Commission (“SEC”), the U.S. Attorney for the District of Massachusetts, and the Federal Bureau of Investigation have announced charges against five individuals, who the authorities allege  attempted to manipulate shares of Boston-based Amogear Inc.  A… Read More

SEC Questions Starbucks’ Accounting Policies

Starbucks’ stock fell today after news broke that the Securities and Exchange Commission sent a letter questioning the way that Starbucks recognizes its revenue. New accounting guidelines were implemented at the end of 2018 that is affecting many… Read More

Form 8-A and Form 10 Registration Statements – Securities Lawyer 101

Form 10 and 8-A can be used to register both debt and equity securities. Upon effectiveness, the issuer becomes subject to SEC reporting requirements.  This is different from a Securities Act registration, in which a company registers a certain number of a class of securities (debt or equity) for a particular public distribution.

Leading Vaping Company Juul Warned About its Practices

According to CNBC, the FDA has slammed vaping company Juul for illegal marketing practices and is threatening fines and seizures against the company. Juul has been claiming that its vapes/e-cigarettes are healthy alternatives to cigarettes, but it turns… Read More

Infamous Former Pharma CEO Martin Shkreli Sues Investor from Prison

Martin Shkreli, who gained infamy in 2015 for buying the drug Daraprim, an antiparasite that costs pennies to make, and raising its price to $750 per pill, then later doing all sorts of crazy things, is back at… Read More