EB5 Investors Magazine English Edition Volume 6, Issue 2 | Page 51

TOP CORPORATE AT TORNEYS JACKIE PRESTER BAKER DONELSON BEARMAN CALDWELL & BERKOWITZ. P.C. | SHAREHOLDER Jackie Prester is a shareholder in the Memphis office of Baker Donelson Bearman Caldwell & Berkowitz. P.C., with 22 years of experience in the corporate and securities practice areas. Prester is the practice group chair of the firm's financial services transactions practice group. She has particular experience advising clients on securities issues relating to the EB-5 Immigrant Investor Program. This experience includes helping clients draft private placement memorandums, negotiating agreements with broker-dealers and other securities professionals, and advising on securities compliance issues. WHAT TRENDS ARE YOU SEEING IN THE EB-5 INDUSTRY? We've noticed more investor solicitation activities from within the United States. These activities raise securities compliance issues different from overseas offerings, such as ensuring that the requirements for the Regulation D private offering exemption are met. Domestic solicitation efforts also raise more compliance issues relating to broker- dealer registration. The SEC has initiated a number of enforcement actions within the past few years penalizing persons who engage in EB-5 investment solicitation activities for failing to register as broker-dealers. The SEC has also penalized the issuers and their sponsors who compensate such unregistered persons. HOW ARE YOU HANDLING THE ISSUE OF REDEPLOYMENT? We draft the securities disclosure documents to clearly advise potential investors of the potential for redeployment and the immigration and financial risks associated with redeployment of funds. Our governance documents provide that the manager or general partner has the authority to redeploy funds, and we work with issuer clients to craft the desired and appropriate balance of flexibility and commitment to attract investors. JAY M. ROSEN SAUL EWING ARNSTEIN & LEHR LLP | PARTNER Jay M. Rosen, a partner with Saul Ewing Arnstein & Lehr LLP, focuses his practice in general corporate and securities law. He has represented both public and private companies in connection with mergers and acquisitions, public and private offerings of securities and SEC disclosures, as well as corporate governance, debt and equity financing, and general corporate matters. Rosen’s practice also includes handling private offerings under the EB-5 immigrant investor visa program. He serves as lead attorney on numerous projects from inception to closing, including contract negotiation and preparation. WHAT TRENDS ARE YOU SEEING IN THE EB-5 INDUSTRY? Mainly as a result of visa retrogression in China, there has been a substantial slow-down in new EB-5 projects in the market in general. In particular, larger-sized EB-5 financings, which have generally been dependent on the large pool of EB-5 investors from China. That being said, we continue to see new EB-5 project activity with respect to smaller-sized EB-5 capital raises in other markets, such as in India and throughout Latin America. Furthermore, we are structuring and negotiating more and more redeployment transactions for existing clients, as their previously-funded EB-5 capital is being paid back and needs to remain “at-risk.” HOW ARE YOU HANDLING THE ISSUE OF REDEPLOYMENT? We analyze, review and negotiate many issues in order to properly structure and implement redeployment transactions from all angles, including from immigration, corporate/ fiduciary and securities compliance standpoints. We work closely with project immigration counsel to ensure a redeployment transaction complies with current USCIS guidelines/policy (which is always evolving), and we review applicable offering and corporate documents to ensure NCE management may proceed with the proposed redeployment, otherwise needs investor consent or must take other steps. Redeployment has many complexities, and we are very strategic in structuring and implementing the most appropriate redeployment based on each client’s particular circumstances. EB5INVESTORS.COM 51