{"id":1284,"date":"2013-09-01T07:26:32","date_gmt":"2013-09-01T15:26:32","guid":{"rendered":"http:\/\/artfieldinvestmentsrdinc.info\/blog\/?p=1284"},"modified":"2015-01-11T08:49:57","modified_gmt":"2015-01-11T16:49:57","slug":"foreign-issuers-going-public-in-the-us","status":"publish","type":"post","link":"https:\/\/artfieldinvestmentsrdinc.info\/blog\/foreign-issuers-going-public-in-the-us\/","title":{"rendered":"Foreign Issuers Going Public In The US"},"content":{"rendered":"<p><strong>Of course you can raise unlimited money with the New Rule 506(c) as a foreign Issuer. But there are also other options.<\/strong><\/p>\n<p>Here is a good article on the whole topic that I found: <a href=\"http:\/\/www.mofo.com\/files\/Uploads\/Images\/100521FAQForeignPrivate.pdf\" target=\"_blank\">http:\/\/www.mofo.com\/files\/Uploads\/Images\/100521FAQForeignPrivate.pdf<\/a><\/p>\n<p>Under SEC rules, foreign companies that\u00a0qualify as \u201cforeign private issuers\u201d\u00a0 have the option but not the obligation to use rules available to foreign companies going public in the U.S.<\/p>\n<p>In order for a foreign company to qualify as a foreign private issuer under SEC rules, it must satisfy the definition\u00a0contained in Securities Exchange Act Rule 3b-4(c) of the Exchange Act.<\/p>\n<p><strong>Rule 3b-4(c) provides the following do not qualify as foreign private issuers:<\/strong><\/p>\n<ul>\n<li>\u2666 an issuer with more than 50% of its outstanding voting securities held by U.S. residents;<\/li>\n<li>\u2666 an issuer\u00a0with\u00a0a majority of\u00a0its executive officers or directors that are U.S. citizens or residents;<\/li>\n<li>\u2666 an issuer with more than 50% of the issuer\u2019s assets are located in the U.S.; or<\/li>\n<li>\u2666 an issuer whose\u00a0business is administered principally in the U.S.<\/li>\n<\/ul>\n<p><strong>Other Interesting advantages for Foreign Companies going public in the US<\/strong><\/p>\n<ul>\n<li><strong>Favorable Financial Statement Requirements for Foreign Companies (Can use your IFRS Audits rather than US GAAP)<br \/>\n<\/strong><\/li>\n<li><strong>Choice of Domicile for Foreign\u00a0Companies in Going Public Transactions &#8211; <\/strong>When going public in the U.S., foreign companies can select\u00a0the domicile of their company.<\/li>\n<li><strong>Raising Capital Options for Foreign Companies in\u00a0Going Public Transactions. <\/strong>\u00a0 Foreign companies qualify to use the exemptions from registration provided by Rule 504, Rule 505 and Rule 506 of Regulation D of the Securities Act as well as Regulation S, for their securities offerings.<\/li>\n<li><strong>SEC Registration\u00a0Options for Foreign Issuers <\/strong>Foreign issuers who go public in the U.S using an underwriter can register an\u00a0initial public offering (\u201cIPO) on Form F-1.<\/li>\n<li><strong>Dual Listings for Foreign Companies &#8211; <\/strong>For foreign companies that are public in another country, dual listing\u00a0in the U.S. provides many benefits.<\/li>\n<li><strong>American Depository Receipts &#8211; <\/strong>ADR\u2019s can trade on the OTCMarkets,\u00a0NASDAQ or other exchanges. If a company trades as an over-the-counter ADR American Depository Receipt, it will not be\u00a0required to provide\u00a0audited financials.\u00a0 With ADR offerings, the foreign company deposits its shares with a U.S. depositary bank. The bank holds these American Depositary Shares, or ADS\u2019s, and issues receipts-ADR\u2019s. The deposit agreement between a foreign company and a U.S. depositary bank creates a sponsored ADR program. This deposit agreement is filed with the SEC using Form F-6, which was designed for foreign issuers.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Of course you can raise unlimited money with the New Rule 506(c) as a foreign Issuer. But there are also other options. Here is a good article on the whole topic that I found: http:\/\/www.mofo.com\/files\/Uploads\/Images\/100521FAQForeignPrivate.pdf Under SEC rules, foreign companies that\u00a0qualify as \u201cforeign private issuers\u201d\u00a0 have the option but not the obligation to use rules [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[52],"tags":[],"class_list":["post-1284","post","type-post","status-publish","format-standard","hentry","category-new-rule-506c"],"_links":{"self":[{"href":"https:\/\/artfieldinvestmentsrdinc.info\/blog\/wp-json\/wp\/v2\/posts\/1284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/artfieldinvestmentsrdinc.info\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/artfieldinvestmentsrdinc.info\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/artfieldinvestmentsrdinc.info\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/artfieldinvestmentsrdinc.info\/blog\/wp-json\/wp\/v2\/comments?post=1284"}],"version-history":[{"count":3,"href":"https:\/\/artfieldinvestmentsrdinc.info\/blog\/wp-json\/wp\/v2\/posts\/1284\/revisions"}],"predecessor-version":[{"id":1287,"href":"https:\/\/artfieldinvestmentsrdinc.info\/blog\/wp-json\/wp\/v2\/posts\/1284\/revisions\/1287"}],"wp:attachment":[{"href":"https:\/\/artfieldinvestmentsrdinc.info\/blog\/wp-json\/wp\/v2\/media?parent=1284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/artfieldinvestmentsrdinc.info\/blog\/wp-json\/wp\/v2\/categories?post=1284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/artfieldinvestmentsrdinc.info\/blog\/wp-json\/wp\/v2\/tags?post=1284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}