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Raising Capital through Advertising on the Internet: Caution Advised

Raising Capital through Advertising on the Internet: Caution Advised

The SEC adopted Final Rules under the JOBS Act on July 24, 2013 to permit certain private offerings under Rule 506 of the Securities Act to to include general solicitation, or general advertising, which most notably includes Internet advertising.  However, the first thing to caution is that the rules have not yet taken effect.  The Final Rule becomes effective on September 23, 2013.  Activities before that date will need to comply with the laws and rules previously in effect.

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