Emerging Markets Law

Showing 4 posts from April 2015.

New House Cyber Bill

The House has passed legislation that encourages sharing of cyber threat information by removing barriers to disclosure.  Under the new bill, companies that share information about incursions would be shielded from antitrust liability for talking to competitors, for example.  The bill also would require that data be anonymized before disclosure to the government, which should protect them from complaints about NSA-style spying.

The bill is one of several new stimuli to public-private sharing of cyber threat info.  The idea is to secure industries from within, and to leverage their internal information for national security purposes.  Several sensitive industries do this already, voluntarily.  The goal is to create an environment of cooperation among other industries, rather than compulsory disclosure under shifting technology norms.

The House bill, H.R. 1560, is criticized by both industry (for not going far enough in terms of standards) and consumer groups (for intruding on civil liberties).  It will have to pass the Senate and the President's desk to become law, and is one of several pending pieces of cyber legislation that would have to do so.  Thus, its fate is not clear; but it is the first bill to pass a full house of Congress on the subject, and it is a bellwether for the likely fact of Congressional action on cyber matters.

SEC Publishes Final Regulation A+ Rules

The SEC published in the Federal Register on April 19th its final rules, implementing the Regulation A+ provisions of the 2012 JOBS Act.

We are pulling together a more detailed summary of the Regulation A+ rules, but the bottom line is that the new rules will allow private companies to raise up to $50 million in an exempt, non-registered offering under the rule.

The previous rules, which practitioners know as Regulation A, had been in place for decades and had a $5 million cap on the amount an issuer could raise.

With the demise of the small-cap IPO market (largely eliminated by Sarbanes-Oxley and its attendant costs) many analysts believe that offerings under new Regulation A+ will allow growing companies to raise significant amounts of growth capital as a precursor to a strategic exit or an IPO.

With publication on April 19, 2015, the rules will become effective in 60 days, on June 19, 2015.

Georgia Legislature Approves Sale of $55 Million in Tax Credits to Fund Venture Capital

My tax partner, Julian Fortuna wrote this:

The Georgia General Assembly recently passed H.B. 439 which contains a provision authorizing the Invest Georgia Fund to raise capital by selling premium tax credits to insurance companies doing business in Georgia.

The Invest Georgia Fund (“the Fund”) is a state-owned venture capital fund established in 2013 to invest in Georgia-based technology, bioscience, manufacturing, marketing, agriculture, and information related companies. The Fund is authorized to invest in early or growth stage companies which are headquartered Georgia and maintain their principal business here for at least three years after receiving funding. Companies receiving funding must also meet certain headcount and revenue criteria. A three member board was appointed in August 2014 to oversee the Fund and select an administrator through an open bidding process.

Continue reading Georgia Legislature Approves Sale of Million in Tax Credits to Fund Venture Capital ›

Solar Power Bill Passes in Georgia

In one of its last acts before adjourning for the year, the Georgia senate passed a solar power bill (H.B. 57) that will significantly relax the state's electric territorial act in a way that will make distributed solar power more accessible in the state.

Georgia is one of the few states in the nation where incumbent electric utilities have an exclusive monopoly on the ability to generate electric power.

Continue reading Solar Power Bill Passes in Georgia ›

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