HARRISBURG, Pa., Oct. 12, 2017 /PRNewswire-USNewswire/ — After Governor Tom Wolf joined former AOL founder Steve Case this week for the “Rise of the Rest” tour to discuss opportunities for start-up businesses in York, Lancaster and Dauphin counties, Secretary of Banking and Securities Robin L. Wiessmann today announced a new online guide to help start-ups outside Silicon Valley navigate Pennsylvania’s regulatory process involved in raising money by offering securities for sale.
The guide, “How Small Businesses Can Raise Capital by Issuing Securities,” can be found online: http://www.dobs.pa.gov/Documents/Publications/Brochures/CorpFin10.17.pdf
“Many business owners successfully raise funding by selling shares in their companies,” said Secretary of Banking and Securities Robin L. Wiessmann. “In Pennsylvania, selling shares of your company requires either that you register your sale or seek an exemption. Registration can be a complex process, so the department has produced a guide to help business owners more easily get started.”
Wiessmann also noted that business owners should ask themselves these three questions in advance of selling shares:
- Are you ready to permanently give up part of your ownership to investors (people you may know or complete strangers) who buy your shares?
- Can you devote time or pay outside experts (such as lawyers and accountants) to structure the offering and draft the required registration or exemption paperwork?
- Can you take time away from running your business to find and solicit potential investors? In addition to soliciting investors, business owners need to manage the ongoing responsibilities associated with shareholders.
Registration is the process by which a business files with the Department of Banking and Securities all documents that will help investors make informed decisions about the proposed securities offering. Pennsylvania and federal laws also contain a series of exemptions, which cover situations where the nature of the securities or the character of the transaction does not demand full registration.
Wiessmann advises business owners seeking registrations or exemptions to seek legal counsel from an attorney experienced in this area
“I strongly suggest that business owners and their attorneys seeking to sell shares of a company to Pennsylvania investors contact the department’s Office of Corporation Finance,” Wiessmann added. “Our staff wants businesses to succeed, and can help guide you through the complex process of registration or exemption.”
Business owners seeking to offer securities for sale to Pennsylvania investors can contact the department’s Office of Corporation Finance at 717-787-8059. More information at: www.dobs.pa.gov/Businesses/Securities/Pages/Securities-Offerings.aspx
MEDIA CONTACT: Ed Novak, 717-783-4721
SOURCE Pennsylvania Department of Banking and Securities