Free-riding and Withholding Interpretation being replaced? By John M. Baker, Esq. NASD Regulation posted the second amendment to its SEC rule filing on proposed Rule 2790, Restrictions on the Purchase and Sale of Initial Equity Public Offerings. Proposed Rule 2790 is intended to replace the existing Free-Riding and Withholding Interpretation, […]
Corp Finance
SEC Sues over Internet “pre-IPO” offering
The Securities and Exchange Commission announced that on September 14, 2000, it filed a civil lawsuit against 1stBuy.com, Inc. (1stBuy) and its founder and CFO, Roger D. Pringle. The SEC’s action pertains to a pre-ipo offering, an Internet stock offering conducted by 1stBuy during 1999 and early 2000 in which […]
GAO Report on Blue Sky Revenue Released
Blue Sky Filings Become a Cash Cow By John M. Baker, Esq. Blue sky filings are quite the cash cow, according to a recent General Accounting Office report. Expenditures and Revenues of State Securities Regulatory Agencies, No. GAO/GGD-00-189R (Aug. 15, 2000). For example, in 1999 the 46 jurisdictions reporting usable […]
LAW REVIEW: BREWING TROUBLE?
INTERNET OFFERINGS CAN RESULT IN A DOUBLE WHAMMY: AN IPO BY INEXPERIENCED BROKERS IN A COMPANY WITH NO FUNDAMENTALS By now, you’re probably aware of Spring Street Brewing’s successful initial public offering completed last year. The company conducted a self-underwriting almost entirely on the Internet and then commenced trading of its securities on its Internet World […]
Lease/Back, Buy/Back Agreements
Lease/Back and Buy/Back Agreements Constitute Securities By Mark J. Astarita, Esq. The Securities and Exchange Commission (“Commission”) announced that on August 2, 2000, it filed a civil lawsuit with an application for a temporary restraining order against Phoenix Telecom, L.L.C. (“Phoenix”) and Jerold Benjamin Clawson (“Clawson”) and other emergency […]
