On March 27, 2012, the U.S. House of Representatives voted to approve amendments made by the Senate to the Jumpstart Our Business Startups Act, or JOBS Act. This is a follow up to a previous Client Alert released on March 19, 2012, and reflects amendments made to the JOBS Act after the House initially approved the bill.
The JOBS Act, which was first passed by the U.S. House of Representatives with overwhelming support on March 8, 2012, and later passed by the Senate with certain amendments on March 21, 2012, aims to reduce the costs of going public for private companies and ease capital raising for private companies. Now that the amended version has passed in both the House and the Senate, the JOBS Act is pending approval by President Obama, who has expressed his support for the bill. It is expected that the JOBS Act will very soon become law. Once that happens, the measures in the JOBS Act are poised to pave the way for an increased number of smaller company IPOs and have a significant effect on the way private offerings are structured.