And yet more comments...

As the dog days of August sadly wind down, someone had to rain on the party. A law professor and former SEC staffer has suggested that the Rule 144 holding periods should not be reduced as per the SEC proposal. He believes investors will be less protected even though capital formation will be enhanced. Of course we disagree. If you also disagree, let's make sure the weight of comment letters is in favor of this dramatic and positive change!

The Small Business Administration also has weighed in on the Form S-3 proposals. They believe there should be a further extension in time before smaller companies have to comply with the onerous Section 404 "internal financial control" requirements of Sarbanes-Oxley. I think, however, this is not likely to happen.

In addition, as with our letter, the SBA suggests that the proposal to limit the use of Form S-3 to 20% of the public float should be increased, and that the form should be allowed to be used for certain secondary offerings as well. Both the Rule 404 suggestion and the use of Form S-3 for secondary offerings for OTCBB companies were recommendations of the SEC's Advisory Committee on Smaller Public Companies.

Deadlines are hitting starting today for comment letters (September 4 is the deadline on the Rule 144 proposal), so get yours in!