Oct 31, 2016
From the Financial Reporting View
The SEC adopted new Rule 147A and amendments to Securities Act Rule 147 to update and modernize the existing intrastate offering framework, which permits a company to raise money from investors within its state without concurrently registering the offers and sales at the federal level.
The SEC also amended Rule 504 of Regulation D to increase from $1 million to $5 million the aggregate amount of securities that may be offered and sold in an exempt offering in a 12-month period. The exemption is available to a company that is not an Exchange Act reporting company, investment company, or blank check company. The SEC repealed Rule 505 in response to changes to Rule 504.
Amended Rule 147 and new Rule 147A will be effective 150 days after they are published in the Federal Register. Amended Rule 504 and the related repeal of Rule 505 will be effective 60 and 180 days, respectively, after they are published in the Federal Register.