The Intelligize Flash — May 27, 2016

Intelligize Flash Report – May 27, 2016.

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IPOs

1.  On May 26, 2016, Twilio Inc. filed their S-1 with the SEC for the registered amount of $100 million dollars.  In their S-1, the company states that their goal is for Twilio to be in the toolkit of every software developer in the world. As of March 31, 2016, over 900,000 developer accounts had been registered on their platform. The company states that, because big ideas often start small, they encourage developers to experiment and iterate on the platform.   As their customers succeed, they share in their success through the company’s usage-based revenue model, which grows as customers increase their usage of a product, extend their usage of a product to new applications or adopt a new product. The company believes the most useful indicator of the increased activity from their existing customers is the Dollar-Based Net Expansion Rate, which was 155% for the year ended December 31, 2015.

2.  On May 26. 2016, SQN Asset Income Fund V, L.P. filed their S-1 for the registered amount of $250 million dollars.  SQN Asset Income Fund V, L.P. is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012, or JOBS Act. They could remain an emerging growth company for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our annual gross revenues exceed $1,000,000,000; (ii) the date that they would become a “large accelerated filer,” as defined in the Securities Exchange Act of 1934.  The company’s S-1 states they will operate a fund in which the capital invested will be pooled with capital invested by other investors. This pool of capital will then be used to invest in business-essential, revenue-producing (or cost-saving) equipment and Other Physical Assets with substantial economic lives and, in many cases, associated revenue streams. The pooled capital contributions also will be used to pay fees and expenses associated with the organization and this offering and to fund a capital reserve. The company may also borrow funds to make investments.

 

Popular Memos

On May 26, 2016, the law firm Morgan, Lewis & Bockius LLP released the memo FERC Upholds and Clarifies Reforms to Market-Based Rate Program.  The publication reports that on May 19, the Federal Energy Regulatory Commission issued Order No. 816-A, which upholds and clarifies the Commission’s reforms to its market-based rate program issued in Order No. 816 on October 16, 2015.  Order No. 816 streamlined a number of requirements for MBR filings, such as those related to horizontal market power wholesale market share and pivotal supplier indicative screens, and the asset appendices required of each MBR applicant. In upholding the prior reforms, the Commission addressed requests for rehearing from various entities, some of which concerned the following topics: reporting obligations for fully committed long-term generation capacity, reporting of long-term firm purchases, notices of change in status, new affiliation and behind-the-meter generation, waiver of Part 101 of the Commission’s regulations, and corporate organizational charts.

 

SEC Litigation

On May 26, 2016, the SEC released the document Christopher R. Esposito, et al. under the material type/category Litigation/Litigation Release with the release number LR-23545.  The litigation states that on May 26, 2016, the SEC announced charges against four individuals and two companies for their roles in conducting a scheme to defraud investors by misappropriating investors funds and by concealing the ownership and control of a publicly-traded company in order to enrich themselves by colluding in the sale of hundreds of millions of shares into the public market, in violation of SEC statutes and regulations.  In a complaint filed in federal court in Boston, Massachusetts, the SEC alleges that Christopher R. Esposito, of Topsfield, Massachusetts, accomplished the first phase of his fraudulent scheme by raising more than $550,000 from investors between June 2011 and June 2012 in an unregistered offering of securities in his company Lionshare Ventures LLC, spending almost $300,000 of Lionshare investor funds for unauthorized personal expenses, and using $75,000 of Lionshare investor funds to acquire control of a Massachusetts-based publicly-traded company, Cannabiz Mobile, Inc., by purchasing all of its convertible debt.