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Amendment #982 of HR 4498 - Helping Angels Lead Our Startups Act
Purpose of Amendment #982
Amendment sought to stipulate that no sponsor of a demo day can collect finders' fees for connecting investors to companies; sought to limit the relief offered under the bill to actual operating companies in the "real economy"; and sought to codify the relief the SEC has already provided for angel investor groups as it relates to demo days.
Latest Action of Amendment #982
On agreeing to the Waters, Maxine amendment (A001) Failed by the Yeas and Nays: 139 - 272 (Roll no. 170).
Amendment #982 Documents
(This measure has not been amended since it was introduced. The expanded summary of the House reported version is repeated here.)
Helping Angels Lead Our Startups Act or the HALOS Act
(Sec. 3) This bill directs the Securities and Exchange Commission (SEC) to amend Regulation D (governing the limited offer and sale of securities without registration under the Securities Act of 1933) to make the prohibition against general solicitation or general advertising inapplicable to events with specified kinds of sponsors (including angel investor groups not connected to broker-dealers or investment advisers) where:
- presentations or communications are made by or on behalf of an issuer,
- the advertising does not refer to any specific offering of securities by the issuer,
- the sponsor does not engage in certain activities (such as offering investment recommendations or advice to attendees),
- the sponsor does not receive compensation for the event which would require registration as a broker or dealer or as an investment advisor, and
- no specific information regarding a securities offering is communicated (other than that the issuer is in the process of offering or planning to offer securities, including the type and amount of securities being offered).
This bill may only be construed as requiring the SEC to amend Regulation D with respect to presentations and communications, and not with respect to purchases or sales.
