The Securities and Exchange Commission (SEC), Small Business Capital Formation Advisory Committee (SBCFAC) has scheduled a meeting to discuss the topic of crowdfunded securities, under Reg CF and Reg +, and liquidity.
The SBCFAC is a group of industry leaders that advise the Commission on issues impacting smaller firms – an important segment of the economy that too frequently gets ignored. The Committee provides relevant advice to the Commission and, at times, has influenced regulatory decisions or policy changes.
The forthcoming meeting on August 2nd, 2022, mainly tackles the topic of private securities issued via crowdfunding platforms. Liquidity for private securities usually occur via a merger or acquisition or, perhaps, a public listing. In recent years, there has been a push to streamline secondary market trading of these securities – yet hurdles remain.
The panel on Secondary Market Liquidity will see the participation of two investment crowdfunding experts: Ryan Feit, co-founder and CEO of SeedInvest, a digital platform raising capital under the full stack of securities exemptions, and Joan Adler, a Partner at Ellenoff, Grossman and Schole, a law firm that has been a leader in the securities crowdfunding sector.
The description of the panel is as follows:
“Companies that raise capital via exempt offerings—sometimes referred to as private offerings—issue securities to investors that are often illiquid. Even for smaller companies that enter the public markets, many of them and their investors continue to face challenges with secondary market liquidity.
What exit opportunities are there for investors in Regulation A and Regulation Crowdfunding deals where the companies continue to provide ongoing reports? What secondary market liquidity challenges do these private and other smaller public companies and their investors encounter? The Committee will explore whether there are changes that could help facilitate secondary liquidity for these investors.”
The meeting will be virtual and available to the public with a live stream on the SEC website. The gathering begins at 10AM on Tuesday, August 4th.
The agenda is available below.
Agenda
Meeting of SEC Small Business Capital Formation Advisory Committee
Location: Public will be able to view on www.sec.gov
Date: Tuesday, August 2, 2022
Time: 10:00 a.m. – 1:00 p.m. (ET)
10:00 Call to Order; Introductory Remarks by Commissioners
10:15 Committee Members’ Outlook: What’s on the Horizon for Small Business Capital Formation?
11:00 Secondary Market Liquidity for Investors in Regulation A and Regulation Crowdfunding Companies and for Smaller Public Companies
Companies that raise capital via exempt offerings—sometimes referred to as private offerings—issue securities to investors that are often illiquid. Even for smaller companies that enter the public markets, many of them and their investors continue to face challenges with secondary market liquidity.
What exit opportunities are there for investors in Regulation A and Regulation Crowdfunding deals where the companies continue to provide ongoing reports? What secondary market liquidity challenges do these private and other smaller public companies and their investors encounter? The Committee will explore whether there are changes that could help facilitate secondary liquidity for these investors.
Speakers:
- Ryan Feit, CEO and Co-Founder, SeedInvest
- Joan Adler, Partner, Ellenoff Grossman & Schole LLP
1:00 Wrap-up and Adjournment