Update Regarding Jobs Act Passage
On Tuesday, March 27, 2012, the U.S. House of Representatives approved the Jumpstart Our Business Startups Act (JOBS Act) and forwarded the legislation to the President for signature. Full text of the JOBS Act is available here .
The JOBS Act makes a number of changes to the Securities Act of 1933 and the Securities Exchange Act of 1934, which comprise the primary federal statutory framework for the regulation of the issuance, purchase and sale of securities in the United States. Among the changes are a relaxation of disclosure requirements for securities issuers with annual gross revenues of less than $1 billion (defined as "emerging growth companies" in the JOBS Act), the easing of requirements for public offerings of securities in amounts less than $50 million, and the creation of an exemption from registration requirements for sales of securities in an aggregate amount of less than $1 million designed to make it easier for startups to utilize crowdfunding platforms - mostly over the internet - to raise seed capital.
The JOBS Act will quickly create unique opportunities for early-stage companies to meet their working capital and growth funding needs. Contact the professionals at Clark Hill PLC for the latest information about the dramatically changing landscape of securities regulation and to find out how we can help your business take full advantage of the tools created by the JOBS Act.