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.
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