Summary of Bill HR 2625
Bill 118 hr 2625, also known as the "Well-Known Seasoned Issuer Adjustment Act," aims to lower the aggregate market value of voting and non-voting common equity required for an issuer to qualify as a well-known seasoned issuer (WKSI). Currently, in order to be classified as a WKSI, an issuer must have a market value of voting and non-voting common equity of $700 million or more. This bill seeks to reduce that threshold to $250 million, making it easier for smaller companies to qualify as WKSIs.
The purpose of this legislation is to provide smaller companies with greater access to capital markets and reduce regulatory burdens for issuers seeking to raise capital. By lowering the threshold for WKSI classification, more companies will be able to take advantage of the benefits that come with this designation, such as streamlined registration processes and reduced disclosure requirements.
Supporters of the bill argue that it will promote economic growth and job creation by making it easier for smaller companies to access capital markets. Critics, however, raise concerns about potential risks associated with lowering the threshold for WKSI classification, such as increased market volatility and reduced investor protection.
Overall, Bill 118 hr 2625 seeks to make it easier for smaller companies to qualify as well-known seasoned issuers, with the goal of promoting economic growth and job creation. The impact of this legislation on the capital markets and investor protection will be closely monitored as it moves through the legislative process.
Congressional Summary of HR 2625
This bill reduces the required aggregate market value of voting and non-voting common equity shares for an issuer of securities to qualify as a well-known seasoned issuer. A well-known seasoned issuer is allowed to make expedited public offerings of securities through automatic shelf registrations.