Another 404(b) extension for small companies
The SEC has approved another gift for non-accelerated filers: another one-year reprieve on Section 404(b) compliance. Even as investor advocates howl, the news came as a relief to many companies. For those betting on another delay, congratulations! You bet correctly. This will give you more time to get everything straight. Of course, 404(a) compliance processes are well underway (or should be). That requirement is not affected. There are some companies that had moved down the 404(b) path, which has been watered down significantly. That work was not in vain, as those companies now are ahead of the curve. If you really want to push it, you could always comply voluntarily. Investors will appreciate that, but the costs have to be weighed.