Section 201(a) of the JOBS Act has been voted on by the SEC and is headed into Law. This new section lifts the ban on general solicitation and permits startups, venture capitalists, and hedge funds to openly advertise that they’re raising money in private offerings.
The Barnes Law Firm, which helps its clients in fundraising and Private Placements, has not issued a formal advisory to its clients as we are still awaiting the final adoption of the rules. The SEC is still within its 30 day window for which it accepts and reviews public comments.
In general, so long as certain formalities are followed in regulatory filings, companies will now be able to publicize they are fundraising and in theory be able to reach a larger pool of investors, making it easier to raise money to help grow their business.
It remains essential that in any fundraising efforts, but especially once this new rule is adopted, that any company wishing to raise funds engage the services of a qualified attorney who is experienced in working with Securities Regulations.
ABOUT THE BARNES LAW FIRM
The Barnes Law Firm, PLLC, is a North Carolina-based boutique law firm focused on serving startup and established businesses throughout the Triangle region and the state at large. The firm was founded in 2011 by Houston Barnes, an attorney and business strategy consultant with a diverse legal and business background, including consulting for large organizations and serving as counsel for a number of startup entrepreneurial and emerging growth businesses. The Barnes Law Firm serves businesses in various sectors including technology, healthcare, pharmaceuticals and medical devices, retail and small business, and franchises. Its practice areas include corporate formation and startups, general business and corporate law, securities laws, licensing and corporate partnering, corporate counseling, government relations and more. Additionally, The Barnes Law Firm works with clients as business partners, helping companies succeed in all areas of business development ranging from inception to growth and expansion. For more information about The Barnes Law Firm, visit http://www.barneslawnc.com.