Regulatory burdens associated with “going public” and thereafter with “being public” are major hurdles facing smaller issuers considering the prospects of an initial public offering (“IPO”). The JOBS Act has impacted that consideration principally in two ways. For the IPO process, the JOBS Act established an “IPO On-Ramp” benefiting smaller issuers by easing certain restrictions for a newly defined class of issuer known as an “emerging growth company” (EGC) that previously hampered the determination by those issuers whether even consider taking on the burden and expense of an IPO.
This webinar explores, for example, the opportunity created by the JOBS Act for EGCs to “test the waters” prior to embarking on the process, and the opportunity for confidential SEC filing and early regulatory assessment of the offering’s viability. For the EGC that succeeds in an IPO, the JOBS Act “on-ramp” significantly reduces the regulatory burdens under the Securities Exchange Act reporting requirements, for example, for a five year period. An equally significant impact of the JOBS Act on determinations by smaller issuers regarding the IPO market is the ability of private companies to avoid becoming a public company subject to Exchange Act Section 12 registration requirements and the panoply of regulatory requirements triggered by that registration. The JOBS Act significantly increased the threshold number of shareholders a company may have before triggering the registration requirement, thus permitting smaller companies to remain private longer.
This webinar episode also tackles these elements of the JOBS Act that directly impact IPO determinations by smaller issuers, and provides practical insights and tips in making these important business decisions.
Robert N. Rapp is Visiting Assistant Professor of Law at the Case Western Reserve University School of Law, where he teaches Securities Regulation, Advanced Securities Regulation and Law, Theory and… Read More
Jillian Sidoti is one of the country’s leading experts on Regulation A+. Since 2008, Jillian has submitted multiple Regulation A Offering Circulars to the Securities Exchange Commission for approval making her… Read More