Reg Changes Shift Flow Of Information On Fundings, Public Companies

You may have noticed over the years that a fair amount of our information on fundings comes from PEHub via its access to paper filings from the SEC. The paper versions of the Form Ds, as PEHub’s Dan Primack explains, weren’t duplicated in online database EDGAR; PEHub, now part of Thomson Reuters (NASDAQ: TRIN), had access through a deal owner Thomson struck with the agency to scan paper filings in for subscription database Thomson Research. But changes made to the Form D (as in disclosure) in August, including a simpler form and mandatory electronic submission in 2009, are shifting the flow of information — not for the better, in Primack’s view. One reason for the change was to promote disclosure but he argues that it is having a different effect: “Specifically, the Regulation D ‘form’ requires far less information than did the original one. Among the missing items are the names of significant shareholders and the specific type of security (i.e., Series A preferred stock). It has added a new box for company revenue, but filers can simply check ‘Decline to disclose.’ In fact, the new form provides so little information that I


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