Showing 14 posts in News & Events.
Deadline for Comments. The SEC's proposed crowdfunding regulations have now been published in the Federal Register. The deadline for submitting comments is February 3, 2014. As noted in our prior article, comments can be submitted electronically through the SEC's website, www.sec.gov, and at times, the SEC chooses to extend the comment period.
Format for Issuer Disclosures. Under the JOBS Act, the issuer (the company raising capital) must file specific disclosures with the SEC, and provide these disclosures to investors and the registered intermediary hosting the offering. The proposed regulations require the disclosures filed with the SEC to be filed through EDGAR (the SEC's Electronic Data Gathering Analysis and Retrieval System) on a new Form C. Read More ›
Speed Date USA, Inc. is suing the online dating company Match.com for $5.65 million for allegedly breaching its contract and misappropriating trade secrets. In essence, the lawsuit claims that Match.com terminated the contract early and then breached its obligations to hold joint events. Match.com terminated the contract, according to the lawsuit, upon learning Speed Date's trade secrets. Match.com then allegedly began to run its own speed dating events without compensating Speed Date USA.
Trade secrets are commonly defined by state statues and generally consist of four elements for the information to constitute a trade secret. The elements of a trade secret are: (i) information; (ii) that has independent economic value; (iii) which is not generally known or readily available; and (iv) such information is subject to reasonable efforts to maintain its secrecy. Read More ›
As a reminder, under the JOBS Act, each investor is limited as to how much the investor can invest in an issuer (the company raising capital) using the crowdfunding exemption during a 12-month period of time. There were some ambiguities in the language of the Act. The SEC proposes to clarify the ambiguities such that the limitations are as follows:
Use of Intermediary. The proposed crowdfunding regulations require the issuer (the company raising capital) to make an offering through only a single intermediary. The SEC apparently believes that in order for an intermediary to perform the necessary monitoring functions, the intermediary needs to be the sole provider of intermediary services. Furthermore, the SEC sees value in having all public comments and discussions about an offering posted in one place. Read More ›
Platform for Offering. The SEC is proposing to limit the availability of the crowdfunding exemption to offerings that are made through a registered intermediary on an Internet website or similar electronic medium, referred to in the proposed regulations as a “platform.” Accessibility through mobile devices is permitted. What the SEC wants to assure is that the offering occurs in a technology environment that will be accessible to the public and allow members of the crowd to share information and opinions. The JOBS Act does not require this limitation. It appears that the SEC is placing considerable emphasis on the benefits of the role of online discussion forums. Read More ›
In his recent blog posting, my colleague, John Mashni, noted that on October 23, 2013, the SEC issued a release containing the long awaited proposed crowdfunding regulations.
The SEC release is 568 pages long with an additional 17 page exhibit. Reviewing the release is not for the faint of heart!
We will share some of the highlights from the release and proposed regulations in bite sized pieces over a period of several weeks. We hope this will make the information easier for you to digest. Read More ›
Bitcoin is an application of crypto-currency, which is based on the premise that money can be any object or record that is accepted as payment. Bitcoins use a peer-to-peer networking system and are not managed by any central authority. They can be transferred by a computer or a smartphone without a mediating financial institution. Bitcoins are rumored to have been originated by a computer programmer going by the name of Satoshi Nakamoto, whose real identity remains mysterious. Learn more about Bitcoins ›
Categories: E-Commerce, News & Events
For our Lansing area readers, Foster Swift Collins & Smith PC is a corporate member of the Michigan Technology Network - Lansing.
Michigan Technology Network - Lansing (MITN) awards fellowships annually that can be applied to technology education. If you're in school, thinking about going back, or need tech training to beef up your skills, a MITN fellowship is the perfect way to reduce your cost. Applications and more information can be found here.
Applications are due on October 15, 2013.
Categories: News & Events
Have you checked out our Health Care Law Blog? This week the post is titled FDA Issues Final Guidance on Mobile Medical Apps.
Categories: News & Events, Regulatory
As of September 23, 2013, the ban on general solicitation has been lifted for private securities offerings exempt from federal registration under Rule 506. Entrepreneurs can now publicly advertise the sale of securities by complying with the newly-effective regulations.
General solicitation means to publicly advertise an investment opportunity in a private company using a means of mass communication. This includes communication via email, website, public speech, or even social media.
These rules are complex and any entrepreneur should seek professional guidance before engaging in any fundraising. Read More ›
Categories: News & Events, Venture Capital/Funding