SEC Issues New JOBS Act Guidance on Emerging Growth
Companies
On September 28, the Securities and Exchange Commission (SEC)
issued additional frequently asked questions (FAQs) as part of its
guidance on Title I of the Jumpstart Our Business Startups Act (the
JOBS Act) related to emerging growth companies.
Most of the FAQs cover issues related to M&A activities of,
and financial information presented by, emerging growth companies.
For example, the SEC clarified that an emerging growth company may
use test-the-waters communications with Qualified Institutional
Buyers (QIBs) and institutional accredited investors in connection
with an exchange offer or merger. An emerging growth company may
also use the confidential submission process to submit a draft
registration statement for an exchange offer or merger that
constitutes its initial public offering of common equity
securities.
