Davis Brown attorney Bill Hanigan was quoted in an article titled, "SEC ruling opens doors, but startup backers say more needed," in the Sunday, July 14 issue of the Des Moines Register. The article discussed the SEC's July 10 ruling to implement a JOBS Act requirement to lift the ban on general solicitation for certain private securities offerings.
This significant change will allow hedge and private equity funds, as well as small businesses looking to raise capital, will be able to publicly advertise that their fundraising, rather than relying on word-of-mouth conversations and private communication. Prior to the ruling, only those companies going public or receiving an exemption could do so. The ban will go into effect on Sept. 8, 2013, 60 days after the ruling.