Alert: Rule 144 Final Release Out; Shell Holders Can Sell in One Year
Today the SEC published the final Rule 144 release. I have not yet read it fully. It takes effect 60 days after publication in the Federal Register, which presumably will be soon.
The big news: Worm/Wulff is officially lifted. They did change from their original proposal and now will allow former holders of shell shares the right to sell after one year following a merger and release of "Form 10 information." This is still huge, as holders now have an exit that was previously cut off.
The other big news: The new Rule 144 changes, including the new six month holding period, are retroactive and apply to securities acquired before or after the effective date of the changes.
More after I have read the whole thing in a few days.
The big news: Worm/Wulff is officially lifted. They did change from their original proposal and now will allow former holders of shell shares the right to sell after one year following a merger and release of "Form 10 information." This is still huge, as holders now have an exit that was previously cut off.
The other big news: The new Rule 144 changes, including the new six month holding period, are retroactive and apply to securities acquired before or after the effective date of the changes.
More after I have read the whole thing in a few days.
Labels: SEC
posted by David N. Feldman at
12/06/2007 03:09:00 PM
1 Comments:
David, a general question about the Form 144 filings: once the 144 has been filed, should investors assume that the shares have already been sold into the market? I know that the Form 144 is technically an "intent" to sell securities, but why would one go to the trouble of filing and putting everyone on notice that new supply is coming into the market. How much of time lag is permissable when selling restricted securities and then filing the appropriate form 144? Thanks!
Boyd
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