SEC Significantly Liberalizes Rules 144 and 145
The SEC has significantly liberalized Rule 144, which provides a safe harbor from the registration requirements under the Securities Act of 1933 for resales of restricted and control securities, and Rule 145, which imposes resale restrictions on certain persons who acquire securities in business combination transactions. The changes, which are summarized in the attached memorandum, shorten the holding period required prior to Rule 144 resales of restricted securities of reporting companies from one year to six months and reduce many of the conditions applicable to Rule 144 resales by non-affiliates.