On April 5, 2012, President Obama signed the Jumpstart Our Business Startups Act (JOBS Act) into law. The JOBS Act is intended to make it easier and less burdensome for companies to raise capital through securities offerings, including IPOs and private offerings. Some of the JOBS Act’s provisions became effective immediately, while other provisions require rulemaking by the SEC under deadlines that vary from 90 to 270 days after enactment of the law. Appendix A to this legal alert contains a chart that sets forth the effective dates or rulemaking deadlines for the various provisions of the JOBS Act Overview.

- Effective upon enactment of the JOBS Act, a new category of companies “emerging growth companies” – will be able to take advantage of relaxed and less burdensome SEC rules in connection with their IPOs and subsequent SEC disclosure obligations for a period of up to five years after their IPOs.

- The prohibitions on general solicitation and general advertising in connection with Rule 506 offerings solely to “accredited investors” and Rule 144A offerings to “qualified institutional buyers” will be eliminated by SEC rulemaking within 90 days after the date of the enactment of the JOBS Act.