Chillin' out till it needs to be funded
With the paucity of time and the concise video analysis leads available from the Networks, this writer has become a lazy beast of burden. Or so it feels as the STOCK ACT of yesterday is followed by the JOBS Act for Emerging Growth companies, I had suggested to be a little snide too as it allows abbreviated filings in Tech IPOs allowing companies to selectively hide information from the public till six months after the IPO. See Quid Pro quo in the JOBS Act here
Among the clauses coming online ( Bloomberg TV) are allowing $1 bln or lesser turnover companies a $2 bln in funding including a $1 mln in crowd funding thru their own portal, allowing these emerging growth companies to file a Draft S1 statement with the SEC The limit for 500 investors in SEC rule 12 (g) of the Securities Exchange Act of 1934 is now for 500 non accredited investors and 2000 investors are allowed before requiring the company’s registration with the SEC/going public
If the company does not cross the $1 bln threshold ( Hint: REid Hoffman is a Founder Director) in 5 years after going public it stops being an emerging growth company, and also if it becomes an “large accelerated filer” which is more likely (after reaching issuance of $700 mln in equity)
And some more we relied on other sources:
And MLK day / Easter are not Federal Holidays.