On the heels of the latest US government decision to discuss the elimination of XBRL for small and emerging companies, the SEC has organized another meeting to take place on February 25 to discuss “the capital formation landscape for small and emerging companies, including data on capital raised in unregistered securities offerings.” The public is encouraged to provide their views on this discussion and we’re certain that the recent crowdfunding legislation, which is sure to be discussed, will generate lots of interest.
In October of last year, the SEC approved the new crowdfunding rules and proposed amendments under Title III of the JOBS Act. The new rules allow companies to raise capital through crowdfunding options, designed to assist smaller companies with capital formation. As we all know, crowdfunding is an evolving concept and has been used to raise funds through the Internet for a variety of projects. So, a federal exemption under the securities laws, Title III of the JOBS Act, was created to allow this type of funding for smaller companies to offer and sell securities. Companies can commence these types of offerings on May 16, 2016.
Next week’s meeting will be administered by the Advisory Committee on Small and Emerging Companies, which provides a formal mechanism for the SEC to receive advice and recommendations for privately held small businesses and publicly traded companies with a market capitalization less than $250 million. The meeting will be webcast live and archived on the SEC’s website as well. To learn more about Regulation Crowdfunding, read our November blog post.
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