The SEC’s amendment to the test-the-waters provisions, extending the ability to test-the-waters to issuers that are not emerging growth companies (“EGCs”), is now effective. The guide summarizes the provisions of new Rule 163B. Under the new rule, any issuer, or person authorized to act on behalf of the issuer (including an underwriter), may engage in
Testing-the-Waters
Lexis Practice Advisor Practice Note – Testing the Waters for All – New Rule 163B Expands TTW to All Issuers: First Analysis
By Anna T. Pinedo on
In this Lexis Practice Advisor Practice Note, we discuss new Rule 163B adopted by the US Securities and Exchange Commission (SEC). On September 26, 2019, the SEC extended the ability to test the waters to all issuers by adopting the highly anticipated new Rule 163B under the Securities Act of 1933, as amended (the Securities…
Legal Update: Testing the Waters for All – New Rule 163B Expands TTW to All Issuers
On September 26, 2019, the US Securities and Exchange Commission extended the ability to test the waters to all issuers by adopting the highly anticipated new Rule 163B under the Securities Act of 1933 (the Securities Act). The new rule allows any issuer, or any person acting on the issuer’s behalf, to engage in test…
SEC’s Proposed Expansion of Testing-the-Waters Communications: First Analysis
By Anna T. Pinedo on
In this Lexis Practice Advisor® Practice Note, we discuss the Securities and Exchange Commission’s (SEC) proposed rule that would expand the permitted use of “testing-the-waters” communications from emerging growth companies (EGCs) only to all issuers, regardless of size or reporting status. Proposed by the SEC on February 19, 2019, Rule 163B under the Securities…
Legal Update: Testing the Waters for All? Proposed New Rule Would Expand Accommodation to All Issuers
Since the Jumpstart Our Business Startups (JOBS) Act was enacted in 2012, emerging growth companies (EGCs) have benefited from the opportunity to test the waters with investors and gauge interest in a potential offering. Title I of the JOBS Act amended Section 5 of the Securities Act of 1933 (the Securities Act) in order to…
SEC Proposes to Expand “Test the Waters” Modernization Reform to All Issuers
By Anna T. Pinedo on
The Securities and Exchange Commission took the long-awaited step of proposing rules for comment that would extend the ability to test the waters beyond emerging growth companies, or EGCs. This topic, of extending the test the waters communications, had been the subject of proposed legislation in the last session of Congress and had made its…