The JOBS Act creates a new world in which companies can offer their stock to private investors generally through public advertising. While in the past a vast web of federal and state regulations have made it expensive, time consuming and difficult to raise capital, that is no longer the case.
20240429 Calibre April 2024 Investor Presentation.pdf
Nevantage: JOBS Act
1. JOBS (Jumpstart Our Business
Startups) Act
Presented By:
Mark Smallhouse & James Kalicki
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2. Funding Overview
Generally the most important factor in the success of
a company
Generally the most difficult task to accomplish
Generally the most confusing aspect of business
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3. Traditional Funding
Savings
Friends and Family
Loans – Traditional Vs. SBA Funding
Private Equity
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4. New Developments
Traditional Crowd Funding
JOBS Act
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5. JOBS Act
Jumpstart Our Business Startups Act
Goal is to make it easier for smaller businesses to raise money
New regulation for equity crowd funding (not effective yet)
More relaxed restrictions on SEC Rule 506 (currently effective)
New Regulation A+
Provides On-Ramp for IPO’s
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6. Important Terms
Accredited Investor:
A natural person who has individual net worth, or joint net worth with the
person’s spouse, that exceeds $1 million at the time of purchase, excluding the
value of the primary residence of such person; or
A natural person with income exceeding $200,000 in each of the two most recent
years or joint income with a spouse exceeding $300,000 for those years and a
reasonable expectation of the same income level in the current year.
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7. Important Terms
Qualified Institutional Buyer:
Institutions that manage at least $100 million in securities including banks,
savings and loans institutions, insurance companies, investment companies,
employee benefit plans, or an entity owned entirely by qualified investor.
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8. Crowd Funding
$1 Million per year
5% - 10% of Net-Worth
1 year transfer restriction
Required disclosures
Reduced financial information
Sales though Broker/Dealers of funding portals
Private right of action-enforcement
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9. Rule 506
No dollar limitation
Repeal of ban against solicitation and advertising
Up to 2,000 investors before registration
State law preemption-no annual federal filing
Limited private right of action for fraud
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10. Reg A+
Does not replace current Regulation A
$50m per year limitation
Offering Circular required to be filed
Annual financial reporting
Private right of action for negligent misrepresentation
Impact questionable
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11. Where Does That Leave Us?
Crowd Funding in the news
Action will be in 506 Arena
No deficit of imagination
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12. How Nevantage Works In Your Favor
Accredited Investors residing in high-tax States
Nevada Corporation (higher net profit)
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13. Q&A
Join us next month on
WEDNESDAY, OCTOBER 24th
as we discuss:
“CORPORATE LEGAL AUDIT:
Managing Legal Costs”
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14. Thank You!
Copies of today’s presentation can be found online at:
www.slideshare.net/Nevantage
+
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