Podcasts

    Laura Anthony

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    • Member Type(s): Expert
    • Title:Founding Partner
    • Organization:Legal & Compliance, LLC
    • Area of Expertise:Securities Law
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Form 8-K
On September 26, 2016, and again on the 27th, the SEC brought enforcement actions against issuers for the failure to file 8-K’s associated with corporate finance transactions and in particular PIPE transactions involving the issuance of convertible debt, preferred equity, warrants and similar instruments. During a conversion process, the number of issued and outstanding shares of common stock can increase dramatically, causing dilution to existing shareholders and a decrease in stock price from large selling pressure. In an action against Connexus Corporation, the SEC noted that the unreported issuances of securities increased the amount of common stock by more than 600% from the last reported number.
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