SAN DIEGO, Oct. 2, 2013 /PRNewswire/ -- The JOBS Act (Jumpstart Our Business Startups Act) signed into US law in 2012 was designed to boost entrepreneurship by making it easier for privately held businesses and startups to raise money. As of September 23, 2013, one of the provisions of the JOBS act changes SEC Rule 506, allowing these promising young businesses to publicly seek accredited investors, making it far easier for businesses and investors to connect.
Previously, businesses were prohibited from publicly soliciting investors in private placements, including advertisements, talking with reporters, or discussing an equity investment opportunity on social media. Access to private placements occurred through closed door deals to a limited number of accredited investors.
By opening the door to greater funding for promising young businesses, this change in the law will encourage greater entrepreneurship, helping innovative companies to make good things happen and create more jobs. One such company that might benefit from this change in the law is Home Town Farms, located in San Diego.
Home Town Farms® is developing retail farming in city and urban areas that efficiently grows large quantities of organic fresh produce in the same place where it's sold, providing high quality produce at lower prices and with less environmental impact than traditional farming methods. Home Town Farms estimates that their urban organic vertical farming method will be 80% more efficient than traditional farming methods and the current distribution system, and will create jobs and provide healthier food options for local communities.
Home Town Farms® is planning their first retail farm in the City of Vista, in San Diego County. Initial investors including Greg Horn, ex CEO of General Nutrition Centers (GNC); have helped Home Town Farms to make great progress, leasing land, getting essential permits approved, purchasing equipment, and assembling the management team.
"This is an exciting time for entrepreneurs, investors and our country," said Dan Gibbs, CEO of Home Town Farms®. "This change in rule 506 will not only help businesses but also help investors find great companies that will improve our health, the environment and create many more new local jobs."
Innovative businesses like Home Town Farms hold great promise, but require investors willing to step out of their comfort zone to support something new. Talking publicly about their company will help Home Town Farms® and other startups to reach diverse accredited investors who share their vision. Investors can also use their IRA or 401K to invest.
ABOUT HOME TOWN FARMS®, LLC
Home Town Farms® is an energy efficient vertical urban farming, distribution and retail business. The company's model combines proven high efficiency vertical growing systems that drastically reduces the amount of water, fuel, land and fertilizer needed to grow produce, plus makes the produce available for sale at the same high-traffic urban location where it is grown. For Home Town Farms information, visit www.hometownfarms.com or call 858-248-9369.
SOURCE Home Town Farms