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Meet the JOBS Act's Jobs-Free Companies

By Emily Chasan, The Wall Street Journal
More than a dozen of the hundreds of companies seeking to use the Jumpstart Our Business Startups (JOBS) Act's looser rules for going public are special purpose acquisition companies (SPACs). The JOBS Act, enacted in April 2012, relieves startup businesses of significant restraints and costs of raising capital imposed by securities laws, limiting compliance obligations for a new category of issuer - the "emerging growth company."

This article discusses the application of the JOBs Act to SPACs, and eligibility requirements for emerging growth companies under the new legislation. Loeb & Loeb partner Mitchell Nussbaum, Chair of the firm's Capital Markets and SEC Compliance Department, is quoted on the benefits and flexibility accorded to smaller companies and international SEC filers that qualify as emerging-growth companies under the JOBS Act, including SPACs.