Category Archives: Uncategorized

Using Finders to Locate Investors – Bruce E. Methven

A number of years ago the SEC effectively banned the use of finders to locate investors for securities offerings that cross state lines. Still, a few states allow finders for their intrastate offerings (offerings made entirely within that state). California … Continue reading

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Offerings That Allow Public Tombstone Ads – Bruce E. Methven

The California 25102(n) offering exemption is one of the few that allows some public advertising. Non-California companies that do more than half their business in California can use this exemption as well – or perhaps form a California subsidiary. The … Continue reading

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Using Rule 506 for Raising Money

Given that the SEC is on the verge of releasing its final regulations that will allow public advertising of Rule 506 offerings, it’s a good time to review traditional Rule 506 offerings. A Rule 506 offering is the primary type … Continue reading

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Public Advertising of California Qualification by Permit Offerings

Although it takes more time and effort than other types of offerings, a California qualification by permit (25113) offering has major advantages in terms of allowing public advertising and having low investor requirements. The offering can only have California investors, … Continue reading

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Status of New Fund Manager Regulations

For those of you who are or may be making offerings in California, this is an update on the latest regarding the new California regulations regarding investment advisers.  This is important because the California Department of Corporations (DOC) is taking … Continue reading

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Choices for Structuring Preferred Stock Offerings – Bruce E. Methven

As mentioned last time, there are many ways to structure securities to be sold in an offering. How they are structured requires balancing what is attractive to investors with what the company can live with. In terms of equity offerings, … Continue reading

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Options for Structuring Promissory Note Securities – Bruce E. Methven.

There are many ways to structure securities to be sold in an offering. How they are structured requires balancing what is attractive to investors with what the company can live with. The basic types of securities are debt and equity, … Continue reading

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Non-Financial Disclosures Required in Offerings – Bruce E. Methven

One basic rule in securities offerings is that in the disclosure document the offeror must disclose everything that a potential investor would reasonably want to know before investing. (“Disclosure document” basically means the private placement memorandum, which is also known … Continue reading

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Fund Managers Required to Register As Investment Advisers – Bruce E. Methven

For a long time managers of many funds were not required to register as investment advisers. This is changing and fund managers (or would-be fund managers) now have a number of important requirements to meet. The changes affect funds that … Continue reading

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SEC Releases Proposed Regs for Rule 506 Advertising – Bruce E. Methven

SEC Releases Proposed Regs for Rule 506 Advertising – Bruce E. Methven Today (August 29, 2012) the Securities & Exchange Commission (SEC) released its long-awaited proposed regulations for public advertising of Rule 506 offerings.  This is pursuant to the JOBS … Continue reading

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