On March 2, 2016, the Financial Services Committee will meet to mark up various proposed bills, including the following that relate to capital formation:
HR 4139, The Fostering Innovation Act, which extends the Sarbanes-Oxley 404(b) exemption for EGCs until the earlier of ten years after the EGC's IPO, the end of the fiscal year in which the EGC's average gross revenues exceed $50 million, or when the EGC becomes an accelerated filer ($700 million in public float).
HR 4498, The Helping Angels Lead Our Startups (HALOS) Act, which establishes a definition of an angel investor for securities law purposes, and clarifies the definition of "general solicitation."
HR 4638, the Main Street Growth Act, which allows for the registration and creation of venture exchanges in order to facilitate a secondary market, including for companies that have undertaken Regulation A offerings.
Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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