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Additional Ways I Can Sell or Allocate Ownership of My Company Without Registering Stock, LLC or Other Interests: Discussion of Common Exemptions Roundup (Post 1)

On Behalf of | Feb 9, 2016 | Raising Capital, Securities Laws, Uncategorized

Exempt Offerings for Other Types of Markets or Purposes.

In our previous blog series on raising capital through exempt offerings (available here), we looked at some of the most commonly used exemptions from the federal registration requirements, including those under the JOBS Act.  In another blog series on Regulation D offerings (available here), we focused on various exemptions under Regulation D and discussed why Rule 506 remains the most dominant exemption of all to date.  In all likelihood, the exemptions covered in those two series are about all of the common exemptions that companies seeking to raise capital in the United States would consider absent special circumstances, but there are also exemptions that are designed for other types of markets or purposes.  As we all know, getting an exemption from registration is a significant advantage because of the reduced burden of regulatory compliance, filing fees, and legal and other transactional costs, among other things.

In this blog series, we will look at Regulation S for offshore transactions and Rule 701 for equity compensation.  This will be a multi-post blog series on exempt offerings roundup.  We will start with Regulation S in our next post.

This posting is intended to be a planning tool to familiarize readers with some of the high-level issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your transaction planners including attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances.  This article should not be treated as legal advice to any person or entity.

Steps have been taken to verify the contents of this article prior to publication.  However, readers should not, and may not, rely on this article.  Please consult with counsel to verify all contents and do not rely solely on this article in planning your legal transactions.

About the Author

Shawn McBride – R. Shawn McBride is the Managing Member of The R. Shawn McBride Law Firm, PLLC, which helps clients in legal issues related to starting companies, joint ventures, raising capital from and negotiating with investors and outside General Counsel functions. Shawn can be contacted at: 407-517-0064, [email protected], or <a ” ” target=”_blank” href=””>