SEC Permits All Issuers to “Test the Waters”
On September 26, 2019, the Securities and Exchange Commission adopted a new rule under the Securities Act of 1933, as amended, that will allow all issuers, and not just emerging growth companies, to “test the waters” prior to the filing of a registration statement. New Rule 163B is a welcome change that expands the availability of one of the most popular accommodations of The Jumpstart Our Business Startups Act of 2012, enabling all issuers to gauge investor interest in a potential registered securities offering before committing to one publicly or incurring associated costs.