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www.TheSecuritiesAttorneys.com Regulation A - Testing the Waters!
If you are a new, unknown and risky company how do you know investors will buy your stock?
Wouldn't you like to know that they are likely to buy before you pay all the expense of an offering? The new Regulation A allows you ”test the waters”to see if your offering will attract investors.
You can use “testing the waters” materials, or advertising materials, both before and after the filing of the offering statement. You can talk to small investors as well as large accredited investors. After publicly filing with the SEC you must include a current preliminary circular or information on where one can be obtained. You must file solicitation materials as an exhibit when the offering statement is either submitted for non-public review or filed and updated. However, you are no longer required to submit solicitation materials at or before the time of first use.
You must use legend or disclaimer indicating that: (1) no money or other consideration is being solicited, and if sent, will not be accepted; (2) no sales will be made or commitments to purchase accepted until the offering statement is qualified; and (3) a prospective purchaser’s indication of interest is non-binding.
Testing the waters should prove helpful to companies in assessing their opportunities.
Please remember that not all prior indications of interest will be honored by the time your offering is qualified by the SEC and you can accept money.
www.TheSecuritiesAttorneys.com Want to know more? – email me at John.Lux@ Securities-Law.info (240) 200-4529
John E. Lux was in the top 5% of authors on Slideshare in 2014 and has been quoted by Bloomberg as an expert on reverse mergers.
This is part of a series on Regulation A, so subscribe here for more and to learn more, go to www. TheSecuritiesAttorneys.com and get a free copy of our book “How to Go Public”
Disclaimer This is not legal or investment advice of any kind Seek competent advice from qualified attorneys and investment bankers Your situation may vary The more you know about finance and business, the more you can profit