02 February-Canada-based NEO Exchange, which launched in March 2016 is rapidly advancing its focus to be the go-to-exchange for publicly-listed emerging companies and has received U.S. Securities and Exchange Commission certification to serve as a designated off-shore-securities market, enabling the upstart exchange to trade more securities, offer traders additional safety and boost its listings business that have raised capital via SEC Rule 904 of Regulation S (aka Reg S).
The SEC edict, which went into effect as of January 5, 2017, provides NEO listed companies and their shareholders the comfort to know they can rely on certain safe harbor provisions as provided by Regulation S under the Securities Act of 1933.
Rule 903 of Regulation S provides a safe harbor for offers and sales of securities by issuers and others in offshore transactions and to non-US persons, without registration under the 1933 Act. For shareholders, Rule 904 of Regulation S provides a safe harbor for resales of securities on the NEO Exchange, as the designated offshore securities market status allows such transactions to qualify as offshore transactions under the 1933 Act.
The certification is akin to ‘Good Housekeeping’ seal, corporations can feel more confident considering the NEO Exchange as a listing venue of choice.
By receiving this SEC status, NEO has taken a step towards growing into a larger venue as the designation recognizes a higher-caliber regulatory framework of the bourse, governing its structure, organization, and reporting standards.
Sam Goldberg, Chief Operating Officer of exchange-listing consultancy PrivatePlacementMemorandum.com hailed the announcement and said “NEO’s new initiative is a brilliant move when considering the pent up demand for qualified, off-shore companies to float shares via public offerings.” Goldberg’s firm specializes in drafting stock exchange-ready prospectuses for listing as well as bespoke Reg S documents, Offering Memorandums, Private Placement Memorandums (PPM) and business plans. The Prospectus LLC team has been involved in offering document preparation and general consulting to companies that have listed on virtually all of world’s major stock exchanges.
“Receiving this SEC status is a major achievement for the NEO Exchange,” said Michael Wilson, Chairman, Barclays Canada, and a director of Aequitas Innovations Inc. and former Canadian Finance Minister and Ambassador to the United States. “This designation speaks to the high caliber regulatory framework of NEO, governing its structure, organization, and reporting standards. Corporations can feel confident considering the NEO Exchange as a listing venue of choice yd2y3hs.”
Stated Jos Schmitt, CEO of NEO, “Being designated an offshore securities market by the SEC is very important to NEO because it means restricted securities – in the case of NEO securities issued outside of the United States – may be bought or sold on the NEO Exchange by US citizens,” Schmitt said. “It allows US investors to feel confident that they are in-line with SEC regulation by investing in and trading a security listed on NEO.”
Furthermore, Schmitt said that by getting the designation can open up future listings opportunities.
“This is also very important for our future corporate listings, as it gives them the confidence that US investors can access their securities without having any concerns,” he told Traders. “Holistically, this SEC designation is another step in our commitment to ensure NEO-listed securities reaches the broadest possible audience, both at home and abroad diovan generic.”
The full story is courtesy of Traders Magazine via this link
Canada’s NEO Exchange Gets SEC Approval To Be Off-Shore Reg S Securities Market