General Solicitation Under Rule 506(c)
General Solicitation Under Rule 506(c)
In 2013 and in accordance with the Jumpstart Our Business Startups Act (the JOBS Act), the SEC amended Rule 506 of Regulation D under the Securities Act of 1933 to permit the use of general solicitation in securities offerings conducted under new Rule 506(c). Rule 506(c) offerings are technically private placement offerings, but issuers if such offerings can do something no other of private offerings have done before – advertise the offering widely: on television, in newspapers, through publicly advertised seminars and over the internet.
The JOBS Act directed the SEC to lift the prohibition on general solicitation provided that all purchasers of the Read More…