Alert: S-3 Availability Limited to Exchange-Traded Stocks

Today the SEC approved the expanded availability of “short form” registration on Form S-3 (and F-3 for foreign companies), as well as changes to Regulation D. Unfortunately I was not able to listen in, so will have to play the replay at some point in the next few days. I have heard, however, that they decided to limit the availability of S-3 to companies trading on exchanges, in other words, no OTC Bulletin Board companies will be able to use short-form registration. In a piece of good news, however, they increased the percent of float a company can register on short-form registration to one-third of the float.

In the meantime I am looking into several aspects of the Worm/Wulff changes in the Rule 144 release and will have more to report on that soon.

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