New Foreign Investment Risk Review Modernization Act

Flying under the radar for most, the new Foreign Investment Risk Review Modernization Act (FIRRMA) was signed into law August 13, and carries the potential of affecting sources of new investment and collaboration. While it is acknowledged to be aimed primarily at Chinese investment and joint ventures, it applies to all foreign direct investment.

Why is This Potentially Important?

Transactions involving technologies broadly deemed critical or strategic for the US national defense, defined to also include economic interests, are potentially subject to review by the Committee on Foreign Investment in the United States (CFIUS). Those transactions can take such forms as outright acquisition, mergers, joint ventures, strategic alliances, or receipt of equity investments conveying a stake of 10% or greater voting interest.

The application fees for a company seeking approval are significant; 1% of the value of the transaction up to a maximum of $300,000. A firm entering into a $20M joint venture might find themselves subject to review and a filing fee of $200,000. In addition to the monetary costs, the review process could take up to 120 - 150 days from the date of filing.

A good summary of the law and its implications is available through Congressional Research Service August 22, 2018 In Focus (CRS IF10952).

A Google search provides a number of sources examples include:

 
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Steve Frayser, Executive Director, Texas State University's Science, Technology, and Advanced Research (STAR) Park
Steve is the first ED of STAR Park and serves as co-director of the Materials Applications Research Center (MARC). Steve is also member of Capital City Innovation's Affinity Group of incubators, accelerators, and program providers across Central Texas.

Learn more about Star Park and Star One.

 

Victoria O'Dell

San Marcos, Texas 78666, United States of America