Want To Support Our Petition For Rulemaking on Rule 144(i)?

A number of friends have asked if they can participate in the effort we launched almost a year ago to advocate before the SEC to reverse the so-called “evergreen” requirement included in Rule 144(i) which was effective in February 2008. The text of our original petition, submitted by nine law firms last October, can be found at http://reversemergerblog.com/2008/10/02/nine-law-firms-submit-request-for-rulemaking-on-rule-144i-to-sec-text-below/. Since then I have recently put in a follow-up letter to the new Director of the Division of Corporation Finance at the SEC, Meredith Cross. I am hopeful that she focuses on this issue and chooses to request that the full Commission act on this soon. At least one senior staffer, in a public event last year, said that the final rule was unfortunate and probably not what the Commission intended.

I think the best way to support our efforts is to write to Ms. Cross. Her address is Meredith Cross, Esq., Director, Division of Corporation Finance, Securities and Exchange Commission, 100 F. Street, NE, Washington, DC 20549-0000. I am a strong believer in persistently but respectfully working with the Commission and its staff when we are hoping to effect rule and other changes and I know you will all do the same in any communication with them.

With the new leadership at the Commission, we are hopeful this significant impediment to capital formation, which is the exact opposite of the purpose of the Rule 144 amendments of which the evergreen requirement is a part, will be reversed. And hopefully soon!

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