The Struggle to Disclose an Issuer’s Intended Uses of Proceeds in Registered Public Offerings

Insights, The Corporate and Securities Law Advisor published an article by Olshan corporate partner Spencer G. Feldman, The Struggle to Disclose an Issuer’s Intended Uses of Proceeds in Registered Public Offerings. The article discusses the importance to investors of understanding the purposes for which an issuer’s net proceeds from a public offering are intended to be used. However, it appears lately that many issuers are routinely providing little specificity with regard to the allocation of their proposed net proceeds. Perhaps some issuers believe that the specific information required pursuant to Item 504 of Regulation S-K forces them to publicly reveal business plans that might put them at a competitive disadvantage. Even so, whether or not an issuer has a specific plan for its offering proceeds in place, there are many instances requiring special Use of Proceeds disclosure that an issuer may overlook. Read the June issue of Insights here.