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Rule 144 & the Adequate Current Public Information Standard

Author: Securities Lawyer 101

Rule 144's Adequate Current Public Information Requirement

Rule 144(c) of the Securities Act of 1933, as amended (the "Securities Act") requires that stockholders of public companies relying upon the Rule to satisfy the adequate current public information requirement. The requirements depend upon whether the issuer is a reporting or non-reporting company.

SEC Reporting Companies l Adequate Current Public Information

If an issuer has securities registered under the Securities Act or the Securities Exchange Act of 1934 (the "Exchange Act"), has been subject

to the SEC's reporting requirements for at least 90 days prior to the time of sale and has filed all reports required by the Exchange Act during the twelve months preceding the sale or for such shorter period that the issuer was required to file reports it has complied with the adequate current public information requirement.

Non Reporting Companies l Adequate Current Public Information

If an issuer is a non-reporting company that complies with the informational requirements of Rule 15c2-11 of the Exchange Act then it has complied with the adequate current public information requirement.

Rule 15c2-11 l Adequate Current Public Information

Rule 15c2-11 requires that the broker or dealer have specified information about an issuer in its records prior to enter quote information. The SEC has expressed that the requirements of Rule 15c2-11 will be met if the issuer disseminates such specified information to its stockholders, brokers, market makers and other market participants.

Rule 15c2-11 requires the following information be disclosed:

·The exact name of the issuer and its predecessor;

·The address of its principal executive offices;

· The state of incorporation, if it is a corporation;

·The exact title and class of the security being quoted;

·The par or stated value of the security;

·The number of shares or total amount of the securities outstanding as of the end of the issuer's most recent fiscal year;

·The name and address of the transfer agent;

·The nature of the issuer's business;

·The nature of products or services offered;

·The nature and extent of the issuer's facilities;

·The name of the chief executive officer and members of the issuer's board of directors;

·The issuer's most recent balance sheet, profit and loss, and retained earnings statements;

· Similar financial information for that part of the two preceding fiscal years as the issuer or its predecessor has been in existence;

· Whether the broker or dealer or any associated person is affiliated, directly or indirectly, with the issuer; and

· Whether the quotation is being submitted or published directly or indirectly on behalf of the issuer or any director, officer or other person, who is directly or indirectly the beneficial owner of more than 10% of the outstanding units or shares of any equity security of the issuer, and, if so, the name of that person, and the basis for any exemption under the securities laws for any sales of such securities on behalf of that person.

Article Source: http://www.articlesbase.com/investing-articles/rule-144-the-adequate-current-public-information-standard-6572916.html

Brenda Lee Hamilton, our law firm's founder and a securities lawyer has counseled clients in legal and compliance matters involving securities and financial transactions including underwritten and direct public offerings, equity and debt offerings, corporate legal and compliance matters and restructurings, go public direct transactions and disclosures, corporate identity theft and hostile takeovers. Brenda Lee Hamilton as a securities lawyer assists clients in all aspects of the go public direct process including filing of Form S-1 and other Registration Statements, Form 211's with the Financial Industry Regulatory Authority ("FINRA") and electronic trading applications with Depository Trust Company ("DTC").In her capacity as a securities lawyer, Brenda Lee Hamilton counsels clients in stock exchange listings involving the New York Stock Exchange, American Stock Exchange, NASDAQ and the OTC Markets. She also assists clients with obtaining dual and single go public direct listings on international exchanges such as the Frankfurt, TSX Venture Exchange , Toronto and London exchanges including legal and compliance with regulatory requirements of the various Securities Commissions, including corporate governance matters, liaising with the various Securities Commissions, continuous disclosure and other filing requirements with the various Securities Commissions, prospectus preparation and filings (IPO and non-IPO), domestic and international direct public offerings, preparation and filing of stock exchange listing submissions, compliance with various stock exchange policies.

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