Securities Law

SEC Publishes CD&I On Mergers And Acquisitions, Form S-4 And Tender Offers

On March 6, 2025, the SEC published several updates to its compliance and disclosure interpretations (“CD&I”) related to mergers and acquisitions, Form S-4 and tender offers.

Rule 145(a)/Form S-4

Revised CD&Is 239.13 and 225.10 address the circumstances upon which seeking commitments for favorable votes, in advance of a merger/acquisition transaction, would be deemed an “offer or sale” of securities under Section 5, requiring either registration or an exemption from registration by the soliciting party.

Acquiring companies often seek management and principal shareholder commitments to vote in favor of a transaction as part of the negotiations associated with a merger/acquisition prior to soliciting such favorable votes from the shareholders at large such as by filing a Form S-4. The SEC recognizes that by executing these agreements, those management and shareholders have made investment decisions, prior to the transaction being presented to non-affiliate shareholders, in violation of Rule 145(a). However, the SEC also recognizes the legitimate reasons an acquiring company

May 6, 2025

SEC Publishes CD&I On Form S-3, Regulation S-K, Form 20-F, And Section 13

On March 20, 2025, the SEC published several updates to its compliance and disclosure interpretations (“CD&I”) related to Forms S-3 and 20-F, and Regulation S-K. The new CD&I importantly allow all issuers, not just well-known seasoned issuers (“WKSIs”) to go effective on Form S-3 registration statements between the filing of a Form 10-K and the filing of the proxy statement containing Form 10-K Part III disclosures.

Earlier, on February 11, 2025, the SEC published one revised and one new CD&I related to Section 13 filings on Schedules 13D and 13G.

Form S-3/Securities Act Rules

Revised CD&Is 114.05 and 198.05 confirm that a Form S-3 ASR and a non-automatically effective Form S-3 may be filed and declared effective after a company files its Form 10-K but prior to filing its Part III information in either a proxy statement or amended Form 10-K. However, the SEC notes that companies are responsible for ensuring that any prospectus used in connection with

April 29, 2025

Market Wrap-Up – First Quarter 2025

This edition of my market recap covers the first quarter of 2025. For a review of November and December 2024 see HERE and for October 2024 see HERE.

Forty-two small cap ($30,000,000 and under) IPOs priced in the first quarter of 2025 (13 in January, 15 in February and 14 in March) – a large uptick from 2024. Below is a chart of relevant deal information for the first quarter IPOs.

Exchange	Offer Amount	Domestic/Foreign Issuer	Banker(s)

Nasdaq Capital	$8,000,000	Foreign	AC Sunshine Securities, LLC
Nasdaq Capital	$6,000,000	Foreign	Kingswood Capital Partners, LLC
Nasdaq Capital	$5,000,000	Foreign	Craft Capital Management, LLC and Boustead Securities, LLC
Nasdaq Capital	$7,000,000	Foreign	Benjamin Securities, Inc. and Prime Number Capital, LLC
Nasdaq Capital	$8,400,000	Foreign	R.F. Lafferty & Co., Inc.
Nasdaq Capital	$5,614,740	Foreign	Bancroft Capital, LLC and Eddid Securities USA
Nasdaq Capital	$7,000,000	Foreign	Benjamin Securities, Inc. and Prime Number Capital, LLC
NYSE MKT	$10,000,000	Domestic	Alliance Global Partners
Nasdaq Capital

April 22, 2025

SEC Publishes CD&I On Exempt Offerings; Accredited Investor Guidance – Part 2

On March 12, 2025, the SEC published several updates to its compliance and disclosure interpretations (“CD&I”) related to exempt offerings. Two of the new C&DI clarify acceptable processes for verifying accredited investor status in a Rule 506(c) offering. On the same day the SEC issued no-action relief providing further detail on affirming accredited investor status. Part 1 of this blog series discussed the two rule 506(c) C&DI and no action letter – see HERE. This Part 2 will continue a review of the remaining substantive CD&I.

Confidential Filing of Form 1-A

Modified CD&I question 182.01 confirms that when a confidentially filed Form 1-A is made public by choosing “Disseminate Draft Offering Statement” in the EDGAR database, it will have satisfied the requirements to make prior confidential information public. The prior CD&I on this topic required an issuer to file, as an exhibit to its public Form 1-A, any related non-public correspondence. The SEC will now undertake to make

April 15, 2025

SEC Publishes CD&I On Exempt Offerings; Accredited Investor Guidance – Part 1

On March 12, 2025, the SEC published twenty-four new or revised compliance and disclosure interpretations (“CD&I”) related to exempt offerings. Two of the new C&DI clarify acceptable processes for verifying accredited investor status in a Rule 506(c) offering. On the same day the SEC issued no-action relief providing further detail on affirming accredited investor status. The new guidance should make the use of Rule 506(c) offerings much easier and more palatable. This blog will address the C&DI directed to Rule 506(c) and the no-action letter, and Part 2 will unpack the rest. I’ve included a refresher on Rule 506(c) at the end of this blog.

New C&DI

Question 256.35 asks “[I]f an issuer does not satisfy any of the verification safe harbors in Rule 506(c)(2)(ii), are there other methods an issuer can use that will satisfy the requirement to take reasonable steps to verify accredited investor status?”

Answering in the affirmative, the SEC confirms that the verification methods listed in

April 8, 2025

Crypto Industry Gets A Second Chance

The last time I substantively wrote about cryptocurrencies and the crypto industry was in April 2023, when the SEC was firmly hostile against the industry and a slew of negative events (FTX collapse, etc..) pretty well eliminated crypto as an active element in the capital markets (see HERE). That has changed!

Here is a recap of the newly regenerated crypto capital markets initiatives:

Digital Asset Executive Order

On January 23, 2025, President Trump signed an executive order entitled “Strengthening American Leadership in Digital Financial Technology” supporting the growth of the digital asset industry in the U.S. The order specifically:

Protects and promotes the ability of individual citizens and private-sector entities to access and use open blockchain including the ability to develop and deploy software to participate in mining and validating crypto assets;
Allow individual citizens and private-sector entities to self-custody digital assets;
Promotes and protects the U.S. dollar through the development and growth of dollar backed stablecoins;

April 1, 2025

SEC Further Expands Ability To File Confidential Registration Statements

The SEC’s Division of Corporation Finance has expanded the ability to file non-public confidential registration statements to include all registration statements.

In 2012, the JOBS Act created a path for emerging growth companies to file draft registration statements (DRS) on a confidential basis when completing an initial public offering. In 2017 the Division of Corporation Finance expanded the DRS filing option to include all Section 12(b) Exchange Act registration statements (but not 12(g) registrations), all registration statements for initial public offerings, and follow on offerings completed within 12 months of an initial public offering, for all class of issuers. See – HERE.

On March 3, 2025, the Division of Corporation Finance announced that it has further expanded the ability to utilize a DRS filing to include:

Initial registrations under the Exchange Act, including both Sections 12(b) and 12(g) including Forms 8-A, 10, 20-F and 40-F;
All Securities Act of 1933 (Securities Act) registration statements regardless of the amount of

March 25, 2025

Widespread “Dealer” Litigation Is Almost Over!

In August 2024, then SEC Commissioner Mark T. Uyeda made a public statement against the rampant enforcement proceedings against small cap investors claiming violations of the dealer registration requirements (see HERE). Fast forward to today, now Chair of the SEC, Mr. Uyeda, is sticking by his contentions and finally, after eight long years of numerous enforcement proceedings, is directing the SEC to roll back its position.

What Happened

This week, the SEC enforcement division entered into two joint motions halting ongoing litigation claiming violations of the dealer registration rules. The U.S. District Court for the District of Massachusetts entered an order in the case involving Auctus Fund Management staying the case while the parties wrap up an agreement to end the litigation. Under the agreement Auctus will not seek attorney fees from the government or pursue a review of the enforcement action.

In the filing, Auctus said “[T]he parties have reached an agreement in principle to dismiss this

March 18, 2025

SEC Chair Uyeda Talks SEC Priorities

Just a few weeks after SEC Commissioner Hester Peirce gave some insight into the SEC’s priorities (see HERE), acting SEC Chair Mark Uyeda got more granular on what we can expect under his regime. Commissioner Uyeda drilled down on particular SEC goals while giving a speech at the Florida Bar’s Annual Federal Securities Institute and M&A Conference.

The overarching goal of the SEC over the next few years will be to foster innovation, job creation and economic growth by maintaining cost effective regulations throughout a business’s life cycle. To accomplish these goals, the SEC intends to “return normalcy” to the SEC by being cognizant of its legal authority, policy priorities and enforcement initiatives, all of which have gone awry over the last few years.

Commissioner Uyeda highlights some of the actions already taken to facilitate these goals, including rescinding Staff Legal Bulletin 14 related to shareholder proposals and proxy statements (for more on Staff Legal Bulletin 14 see

March 11, 2025

Commissioner Peirce Gives A Sneak Peak At SEC Priorities

At the end of January 2025, SEC Commissioner Hester Peirce, who finally is not on an island alone within the SEC top brass, gave a speech at the Northwestern Securities Law Institute giving some insight into what we can expect from the SEC under the new administration.

Commissioner Peirce has been vocal over the years about her disdain for bringing political and social issues into SEC reporting and compliance management for public companies, however now, working with like-minded executives, she has solid ideas for a path forward. First and foremost, a public company should have the goal of maximizing value for its shareholders as a group. Unfortunately, in today’s world, public companies are often forced to answer to activists, non-shareholder “stakeholders” and the like, forcing executives to utilize company resources to further these groups (or individual’s) favorite cause. Commissioner Peirce notes that “[D]irectors and executive officers serve shareholders and society best by keeping the companies they guide focused on

March 4, 2025

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Securities Law

SEC Publishes CD&I On Mergers And Acquisitions, Form S-4 And Tender Offers

SEC Publishes CD&I On Form S-3, Regulation S-K, Form 20-F, And Section 13

Market Wrap-Up – First Quarter 2025

SEC Publishes CD&I On Exempt Offerings; Accredited Investor Guidance – Part 2

SEC Publishes CD&I On Exempt Offerings; Accredited Investor Guidance – Part 1

Crypto Industry Gets A Second Chance

SEC Further Expands Ability To File Confidential Registration Statements

Widespread “Dealer” Litigation Is Almost Over!

SEC Chair Uyeda Talks SEC Priorities

Commissioner Peirce Gives A Sneak Peak At SEC Priorities

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SEC Publishes CD&I On Mergers And Acquisitions, Form S-4 And Tender Offers

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