Growth Capitalist (https://growthcapitalist.com/category/premium-articles/legal/page/20/)
Legal developments affecting capital formation by pre-IPO private and public emerging growth companies
The Securities and Exchange Commission has fined and barred two PIPE fund managers from the advisory industry for a minimum of two years for misappropriating fund assets for personal use.
Two recent enforcement actions by the Securities and Exchange Commission impacted investors in emerging growth companies (EGCs), and should serve notice on other EGC investors that the commission’s enforcement division is watching investor behavior around equity private placements and follow-on offerings closely in the micro- and small-cap markets.
With no announcement and little notice, the Depository Trust Corporation in mid-August filed a Notice of Withdrawal with the SEC to withdraw its December 2013 proposal to adopt rules instituting notice and appeal procedures for issuers whose shares are “chilled” or “locked out” by the securities settlement and clearing agency.
The SEC has charged four promoters with ties to the Pacific Northwest for manipulating the securities of several microcap companies, including marijuana-related stocks
