Publisher: Reuters Author: Sarah Lynch Dallas Mavericks owner Mark Cuban took a swipe at the…
Publisher: Morrison & Foerster
Now that the SEC has relaxed the restrictions on general solicitation in connection with offerings made pursuant to new Rule 506(c) and Rule 144A, Morrison & Foerster have provided their perspective on various interpretative questions that may have come up with the new fundraising climate.
Here is a preview of some of the Q&A’s in today’s blog alert that are relevant to both accredited investors and investment vehicles looking to raise funds.
The Use of Websites
Q: Can you use general solicitation to garner interest in a site that provides general information about investment opportunities without conducting additional verification?
A: Yes, general solicitation may be used to promote a site that provides only general information about investments and does not provide access to specific investment opportunities
Q: Can matchmaking sites generally advertise and then provide access only to accredited investors without undertaking additional verification steps.
A: No. Of course, a matchmaking site can continue to make certain opportunities available on a limited basis only to investors that it has previously determined are accredited investors, while making other investments available broadly and conducting additional verification steps.
For more Q&A’s from Morrison & Foerster’s report, please click here.