New SEC Rules Facilitate Switching between Public and Private Offerings

The Securities and Exchange Commission has adopted new rules addressing two dilemmas that companies seeking to raise capital often confront, particularly in light of recent market volatility:

• If market conditions deteriorate after the company has commenced a public offering, can the company withdraw the public offering and raise capital through a private offering?
• If market conditions and investor demand improve after the company has commenced a private offering, can the company abandon the private offering and pursue a registered public offering?

Hale and Dorr has just published a Corporate Advisor describing the safe harbor provisions added by the new rules, which become effective on March 7, 2001.

Click here to read the Corporate Advisor. If you have any questions about the new rules, you may contact:

Michael Bain
[email protected]