“Test-the-Waters” Under this March 16th, 2021 rule, all issuers will be allowed to gauge market interest in a possible initial public offering or other registered securities offering through discussions with certain institutional investors prior to or following, the filing of a registration statement.
As potential investors, “Test-the-Waters” allows you to provide valuable feedback to EquityDoor and it helps us and the issuer to gauge interest in a potential offering.
Under the rule:
- there are no filing requirements
- the communications are deemed “offers”; and
- issuers subject to Regulation FD will need to consider whether any information in a test-the-waters communication would trigger disclosure obligations under Regulation FD or whether an exemption under Regulation FD would apply.