SEC Provides Guidance on Activities That Constitute "General Solicitation" for Private Placements on Electronic Platforms

September 04, 2015

The U.S. Securities and Exchange Commission on August 6, 2015, issued a no-action letter to Citizen VC, Inc. and new compliance and disclosure interpretations, providing clarification and guidance on what constitutes general solicitation in the context of a private placement offering pursuant to Rule 506(b) of Regulation D. In the Citizen Letter and C&DIs, the SEC clarifies the type of (i) website that an issuer can use to facilitate a private placement offering, (ii) information that can be included on the issuer’s website and (iii) investors that can view the website.

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