In the years following the JOBS Act, which created the term “emerging growth company” and made available certain disclosure and other accommodations to companies that qualified as EGCs, there has been renewed focus on scaled disclosure. Today, the Securities and Exchange Commission has proposed amendments to the definition of “smaller reporting company” as used in the SEC rules and regulations. The proposed amendments, which would expand the number of registrants that qualify as smaller reporting companies, are intended to promote capital formation and reduce compliance costs for smaller registrants, while maintaining investor protections. Registrants with less than $250 million in public float would qualify, as would registrants with zero public float if their revenues were below $100 million in the previous year.
We will be publishing a summary of the proposed amendments and discussing the issues raised in the proposing release in a forthcoming client alert.
See the proposing release here: https://www.sec.gov/rules/proposed/2016/33-10107.pdf.