Most EB-5 capital raises are securities offerings. In the United States, securities offerings must be registered with the Securities and Exchange Commission and possibly the states the offering impacts unless an issuer can claim an exemption from registration.
In the EB-5 space, the two most common securities exemptions historically relied upon are Regulation S and Rule 506(b) of Regulation D. With the passing of the JOBS Act, however, a new Rule 506(c) of Regulation D was implemented. Rule 506(c) may be a particularly useful exemption for issuers in the EB-5 space.
In NES Financial’s recently released eBook, Navigating a Changing EB-5 Sector: Insights from Experts, Jor Law of Medallion Partner VerifyInvestor.com talks about the emergence of Rule 506(c) in an article expanding on the above paragraphs.
Read the full article by downloading your free copy of the eBook today!