Thinking about offering equity compensation to your employees or independent contractors? Here is some of the information you need to know about securities laws in Oregon and Washington. Companies sometimes opt to provide profit interests, stock options, or other alternative compensatory benefits in exchange for services in addition to or in lieu of paying [...]
The New Regulation A: Effective June 19, 2015 As the amended Regulation A (or Regulation A+ as it is often referred to) launches, many companies are enthusiastically wondering whether this powerful vehicle for raising funds could be right for them. Often described as a mini public offering, securities offered under Regulation A are exempt from [...]
Securities Law – Revenue Capital Investing Many companies in need of growth capital have grown beyond the traditional equity investment phase, but are still not the correct bank-profile fit for straight debt. In addition, some companies are not prime exit-scenario candidates, which can also limit their ability to raise venture funding. Similarly, some investors prefer to [...]
What is a convertible note? A convertible note is currently a popular fundraising vehicle, with both investors and fundraising companies seeking to use it, but what exactly is it? A convertible note is, simply put, a hybrid between receiving a loan and receiving an equity investment in your company. In essence, an investor loans money [...]
You probably already know that the sale of “securities” triggers legal risks and compliance obligations, but many entrepreneurs and business owners are a little fuzzy on the precise definition of a “security.” Most know that any sale of corporate stock counts as the sale of securities, but the statutory definition is actually much broader. The [...]
What is a UCC Search and Why is it Important? You may not have heard of the UCC unless you frequently lend money, but if you are purchasing business assets you may need to understand the basics. Whether you’re purchasing used equipment or buying the books and accounts of a business, make sure you protect [...]
Lifting the Ban on General Solicitation in Rule 506(c) Securities Offerings In a long awaited and widely sought change, the SEC has recently announced a final rule (the “final rule”) lifting the ban on general solicitation or general advertising (collectively, “general solicitation”) in certain private offerings of securities, as required by the JOBS Act. The [...]
As I am sure you are aware, there has been a significant amount of uncertainty as to the effect of various provisions of the United States tax code due to the prolonged congressional negotiations associated with the fiscal cliff. However, with President Obama’s recent signature on the American Taxpayer Relief Act of 2012 (“ATRA”), the [...]