NEW YORK--(BUSINESS WIRE)--IssuWorks Holdings LLC (“IssuWorks”) announced today that it is launching a private placement offering to raise capital for IssuWorks, a Software as a Service (SaaS) firm dedicated to developing and implementing superior capital market solutions. This offering is being commenced on a day that represents a historic milestone for the U.S. securities industry, as it is the first day in which issuers may use general solicitations for private placements as authorized under the JOBS ACT. IssuWorks, the brainchild of founder, CEO and Chairman David Weild IV, has been established to improve the capital markets for corporate issuers and revitalize IPO issuances of all sizes by leveraging technology.
IssuWorks intends to partner with other Wall Street brokerages and investment banks utilizing its proprietary software and methodologies to turbo-charge the securities distribution process and drive the best possible offering and aftermarket outcomes for corporate issuers.
“IssuWorks was founded by noted issuer advocates, industry leaders and capital markets innovators who believe empowering investment banks and issuers with greater capabilities at lower cost will be a highly attractive value proposition to enable us to capture and grow a significant portion of a very large fee pool and drive attractive returns to its investors,” said Weild. “We are focused on leveraging recent shifts in technology to create next generation platforms that will improve new issue performance and revitalize capital formation. The long-term objective of IssuWorks is to restore the U.S. capital formation engine of our economy to where US stock markets are once again the envy of stock markets throughout the world.”
Weild, a former NASDAQ Vice Chairman, is a renowned capital markets expert and a longtime advocate for market structure reform, and is often referred to as “The Father of the JOBS Act”. He was present when President Obama signed the JOBS Act into law in the White House Rose Garden on April 5, 2012.
Today, September 23, 2013, marks the first time since the Securities Act of 1933 was enacted that companies can publicly solicit investors and advertise the sale of securities without being required to register the offering with the Securities & Exchange Commission (SEC) or with any state provided certain requirements are met, most notably that the issuer can with reasonable effort verify that investors in their securities are accredited investors.
In a November 2009 study, “A wake-up call for America,” published by Grant Thornton, co-authors David Weild and Edward Kim recommended the elimination of SEC or statutory restrictions on “general solicitation” or “general advertising,” provided the ultimate purchasers are “qualified” investors. Their recommendation led to the creation of Title II of the JOBS Act.
As required by the JOBS Act, these new regulations modify the long-standing limits on issuers of securities in private transactions that had prevented such issuers from engaging in general solicitation regarding those securities. The primary beneficiaries of the changes to Reg D Legislation will be small, closely-held and often capital-starved businesses that are trying to access growth capital as well as private funding. The new rule offers an alternative to issuers who wish to reach a potentially broader audience, while issuers are still able to “do it the old fashioned way,” and not engage in a public solicitation.
IssuWorks is the first SaaS (Software as a Service) firm focused on leveraging recent shifts in technology to create next generation platforms that will improve new issue performance and revitalize capital formation. IssuWorks’ goal is to drive superior results for entrepreneurs, issuers, and the venture capital and private equity communities by reducing the cost and complexity of new issue preparation while decreasing the cost for Wall Street to improve the marketing and aftermarket support of new issues. The combined effect will keep IPO “windows” open longer, resulting in higher throughput (more new issues). IssuWorks has a key strategic partnership with Netroadshow, the global standard for online roadshows for both public and private companies. IssuWorks is the exclusive computer-based marketing provider for Netroadshow, and they are our exclusive roadshow partner. Weild & Co., a wholly-owned subsidiary of IssuWorks, is a FINRA-registered broker-dealer.
About David Weild IV
David Weild is the Founder, CEO and Chairman of IssuWorks. He is a former Vice Chairman of The NASDAQ Stock Market, where he created the Market Intelligent Desk “MID”, a real-time technology based pulse in a help desk environment for publicly-listed companies. Weild is often referred to as the “Father of the JOBS Act” and has spoken in front of the US House of Representatives, the US Securities and Exchange Commission (SEC) and the thirty-four member nations of the Organization for Economic Co-operation and Development (OECD). He is recognized as a leading expert in stock market structure and how it impacts capital formation including initial public offerings (IPOs) and follow-on offerings. He was formerly the head of corporate finance and equity new issues at Prudential Securities where it is estimated that he worked on and had management responsibility for over 1,000 IPOs, follow-on stock and convertible bond offerings. Weild pioneered the use of "Evergreen due diligence" practices and "Rapid Offerings of Common Stock" ("ROCS") which laid the ground work for techniques now widely used in the follow-on equity offering markets. His expertise and critique are frequently sought by CNBC, Fox Business News and the financial print media.
- The securities may be sold only to “accredited investors,” which for natural persons are investors who meet certain minimum annual income or net worth thresholds;
- The securities are being offered in reliance on an exemption from the registration requirements of the Securities Act and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act;
- The SEC has not passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials;
- The securities are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities; and
- Investing in securities involves risk, and investors should be able to bear the loss of their investment.