{"id":3660,"date":"2013-07-22T00:00:02","date_gmt":"2013-07-22T07:00:02","guid":{"rendered":"http:\/\/firemark.com\/?p=3660"},"modified":"2016-09-23T00:41:16","modified_gmt":"2016-09-23T07:41:16","slug":"seeking-investors-for-your-film-project-things-just-got-a-little-easier-almost","status":"publish","type":"post","link":"https:\/\/firemark.com\/2013\/07\/22\/seeking-investors-for-your-film-project-things-just-got-a-little-easier-almost\/","title":{"rendered":"Seeking investors for your film project? Things just got a little easier (almost)."},"content":{"rendered":"
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SEC Adopts Rules implementing [some] provisions of the JOBS Act of 2012<\/h2>\n

If you're planning to finance your film, play, musical or other project by seeking investors, things may have just gotten a little bit easier for you. A few days ago, on July 10th, the Securities Exchange Commission finally took a long-awaited step toward implementing key provisions of the JOBS Act of 2012 that will allow issuers of securities under Rule 506 to cast a wider net in seeking investors. The regulations were supposed to have been out long before now, but discord and disorganization at the SEC got in the way.<\/p>\n

Lifting the ban on General Solicitation<\/h2>\n

The new provision can be found at Rule 506(c) of Regulation. It allows general solicitation and general advertising in Rule 506 securities offerings, provided that all purchasers of the securities are accredited investors and the issuer reasonably believes, and takes reasonable steps to verify, that such purchasers are accredited investors.<\/p>\n

What this means, put simply, is that if you're financing a film, play, or musical, and you're seeking investors, you can advertise the opportunity to the public at large, provided you only sell units to persons who qualify as “accredited investors” (For more about what that means, see my previous post.)<\/a><\/p>\n

The commission also adopted a rule prohibiting certain “bad actors” from availing themselves of the exemption provided by Rule 506.<\/p>\n

Similarly, new Rule 144A(d)(1) clears the way for the offering of securities to persons other than qualified institutional buyers (\u201cQIBs\u201d) in Rule 144A offerings, including by means of general solicitation, provided that the securities are sold only to persons that the seller reasonably believes are QIBs.<\/p>\n

New filing and reporting requirements<\/h2>\n

The SEC also voted to propose amendments that aim to improve the SEC\u2019s ability to monitor developments in the Rule 506 market and to address concerns about fraud.<\/p>\n

The rule changes would:<\/p>\n