• SEC Rule 506 Private Securities Offerings Can Now Be Publicly Advertised
  • September 30, 2013
  • Law Firm: Ray Quinney Nebeker P.C. - Salt Lake City Office
  • Summary. In a fundamental shift in federal securities laws, new U.S. Securities and Exchange Commission (“SEC”) rules will permit companies seeking to raise capital in Rule 506 private placements to engage in “general advertising and solicitation” (e.g., internet solicitations, mass mailings, website banner ads, etc.) to attract investors. Thus, 80 years of securities laws requiring that “non-public offerings” or “private placements” remain “private” (including conditions intended to limit the offering to potential investors with whom the company or its senior management have pre-existing relationships) have been overturned.