U.S. issuers are now using general solicitation, raise $5.8 billion in three months, SEC chief says

Issuers are taking advantage of the ability to generally solicit their offerings, this according to preliminary usage information released during a speech by the Securities and Exchange Commission Chief on Monday. “In July, the Commission adopted rules implementing the JOBS Act mandate to lift the ban on general solicitation, and the rules became effective on September 23, 2013. Although existing Rule 506 continues to be a popular method for capital raising, issuers are taking advantage of the new rule”. SEC Chair Mary Jo White said in a speech to the Securities Regulation Institute in Coronado, California. There has to date been little to no information up to this point on the use of general solicitation. Data collected by the SEC’s Division of Economic and Risk Analysis showed that approximately 500 offerings were conducted with general solicitation, raising approximately $5.8 billion in from September 23, 2013 to December 31. A general solicitation means to publicly advertise