Securities Lawyer 101 l Brenda Hamilton

Securities Lawyer 101 l Brenda Hamilton

Friday, January 17, 2014

Shelf Registration Statements l Going Public Bootcamp


Shelf Registration Statements l Going Public Bootcamp


A shelf registration statement allows an
issuer to register a public offering even
when there is no present intention to sell
all the securities being registered. Shelf
registrations are often used in going
public transactions by issuers registering
 securities on Form S-1.
Private companies seeking public company
status can use a Form S-1 shelf registration
to register multiple securities offerings at the
same time on a single registration statement. In going public transactions, often
issuers sell shares in reliance upon Rule 506 of Regulation D to raise seed capital,
and then register those shares by filing an S-1.

Rule 506 offerings are often used to obtain the number of shareholders—25 or
more—required by the Financial Industry Regulatory Authority (“FINRA”) for a ticker
symbol assignment.
Shares sold by private companies in Rule 506 offerings must be held at least 12
months prior to resale unless registered on Form S-1 or other SEC registration
statement. This makes the shelf registration statement particularly appealing in
going public transactions, because the issuer can register shares held by selling
shareholders as well as new shares it intends to sell in an initial public offering (“IPO”)
 or direct public offering (“DPO”).
In a continuous offering the issuer begins to offer its securities immediately after
its Form S-1 registration statement is declared effective by the SEC. The securities
will be offered until the issuer close its offering. In a delayed offering on Form S-1,
the issuer does not intend to immediately sell all of the securities when the registration
statement is deemed effective. Only issuers that are primarily eligible to use Form
S-3—Large Accelerated Filers Well Known Seasoned Issuers, or WKSIs—may sell
on a delayed basis or conduct an at-the-market offering. Any issuer may engage in
any other type of shelf offering.
With an effective shelf registration statement, the issuer takes the shares “off the shelf”
when it is ready to offer them. Shelf registration statements provide tremendous
flexibility in going public transactions by allowing issuers to choose from various structures
while registering securities for sale continuously, delayed or immediately. Using a shelf registration
statement in a going public transaction provides the issuer with flexibility in its offering structure
and also with the means to quickly gain access to the public markets.
For smaller companies, shelf registrations are particularly attractive because they save the issuer
time and money.  Only one registration statement need be prepared, which reduces legal expenses and
eliminates the need to wait for the SEC to deem additional S-1s effective when the company decides
to launch successive offerings.
This securities law blog post about going public is provided as a general informational service to clients
and friends of Hamilton & Associates Law Group and should not be construed as, and does not
constitute, legal and compliance advice on any specific matter, nor does this message create an
attorney-client relationship. For more information concerning the rules and regulations affecting the use
of Rule 144, Form 8K, FINRA Rule 6490, Rule 506 private placement offerings, Regulation A, Rule 504
offerings, SEC reporting requirements, Securities Act registration on Form S-1 and S-8, Exchange Act
registration on Form 10, Pink Sheet listing, OTCBB and OTCMarkets disclosure requirements, DTC Chills,
Global Locks, reverse mergers, public shells, go public direct transactions and direct public offerings please
contact Hamilton and Associates at (561) 416-8956 or by email a info@securitieslawyer101.com.
Please note that the prior results discussed herein do not guarantee similar outcomes.
Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 N
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.SecuritiesLawyer101.com

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