RocketHub White Paper on the JOBS Act – comments by David Drake

The JOBS Act SEC.302(b)/SEC4A.(a)(7) – INVESTORS’ RIGHT TO RESCIND

points that

(11) prohibit its directors, officers, or partners (or any person occupying a similar status or performing a similar function) from having any financial interest in issuer using its services…
“RocketHub recognizes the concern that an intermediary with a financial interest in a specific issuer may be incentivized to display favoritism toward, or promote, that issuer’s campaign. We read this section with the intent of preventing the executive staff of funding portals from directly investing in offerings.”
Does this mean a platform like RocketHub would not be able to take payments in equity instead or in addition of a fee for services?   This writing is intended for an equal playing field. It needs to be delineated by SEC that a platform can take equity position as long as it takes the same position from everybody along any cash fees for listings on it’s service.   Right now platforms are not allowed to take equity in any format.
Read the White Paper by RocketHub posted at the SEC website here
David Drake


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