SEC Adopts Rule 144 Amendments
January 24, 2008
The SEC has recently amended Rule 144 of the Securities Act of 1933, the provision governing the sale of restricted and controlled securities. The Amendments are effective February 15, 2008. Prior to said amendments, Rule 144 provided for several preconditions to effectuate the public resale of restricted and controlled securities. There were requirements relating to: the holding period of the restricted or controlled securities, the adequacy of the current information on the issuer, trading volume restrictions, the manner of selling said securities, and the requirement of filing notice with the SEC in a form 144 filing. The most significant result of the amendments is the reduction in holding period for restricted and controlled securities. The following chart, provided in the recent SEC Final Rule Release, outlines the new amended requirements for resale of restricted securities by affiliates and non-affiliates.
| Affiliate or Person Selling on Behalf of an Affiliate | Non-Affiliate (and Has Not Been an Affiliate During the Prior Three Months) | |
| Restricted Securities of Reporting Issuers | During six-month holding period After six-month holding period
| During six-month holding period After six-month holding period BUT before one year After one-year holding period |