At today's House Financial Services Committee meeting, ten bills relating to facilitating access to capital and the reduction of regulatory burden on smaller reporting companies were approved. Among the bills that passed the committee, the following relate to capital formation:
- HR 4139, The Fostering Innovation Act, passed the committee 42-15. The bills proposes to extend the Sarbanes-Oxley 404(b) exemption for EGCs until the earlier of ten years after the EGC's IPO, the end of the fiscal year in which the EGC's average gross revenues exceed $50 million, or when the EGC becomes an accelerated filer ($700 million in public float).
- HR 4498, The Helping Angels Lead Our Startups (HALOS) Act, passed the committee 44-13. The bill establishes a definition of an angel investor for securities law purposes, and clarifies the definition of "general solicitation."
- HR 4638, The Main Street Growth Act, passed the committee 32-25. The bill would allow for the registration and creation of venture exchanges in order to facilitate a secondary market, including for companies that have undertaken Regulation A offerings.
In his opening remarks, Financial Services Committee Chairman Jeb Hensarling noted that both HR 4498 and HR 4638 would "...help ignite the entrepreneurial spirit by helping small businesses attract investments so they can open their doors even wider."
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