SEC Company Response from CLOUDCOMMERCE, INC. (AIAD) (CIK 0000743758) — Feb 5, 2021
CLOUDCOMMERCE, INC. (AIAD) (CIK 0000743758)
Date: Feb. 5, 2021 · CIK: 0000743758 · Accession: 0001213900-21-007096
AI Filing Summary & Sentiment
File numbers found in text: 333-252358
Referenced dates: February 3, 2021
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CORRESP
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Barrett S. DiPaolo Partner
bdipaolo@srf.law
D +1.646.810.2173
February 5, 2021
Securities and Exchange Commission
Division of Corporation Finance
Office of Trade & Services
100 F Street, NE
Washington, DC 20549
Attention:
Daniel Morris
Mara Ransom
Re:
CloudCommerce, Inc.
Registration Statement on Form S- 3
Filed January 22, 2021
File No. 333-252358
Ladies and Gentlemen:
Set forth below, on behalf of our client CloudCommerce,
Inc. (the “Company”), we are submitting the Company’s responses to comments received from the staff of the Division
of Corporation Finance (the “Staff”) of the Securities and Exchange Commission (the “Commission”) by letter
dated February 3, 2021 (the “Comment Letter”), with respect to the Company’s Registration Statement on Form S-3
filed with the Commission on January 22, 2021 (the “Registration Statement”).
To facilitate the Staff’s review, we
have included in this letter the captions and numbered comments from the Comment Letter in bold text and have provided the Company’s
responses immediately following the numbered comments.
Registration Statement on Form S-3
General
Please provide a legal analysis of your
eligibility under General Instruction I.B of Form S-3 to use the current form for primary and resale offerings. In this regard,
please provide a calculation of your public float, as well as the number of shares held by non-affiliates, and an appropriate discussion
of the market(s) where your shares are quoted, as necessary. Refer to Securities Act Forms CDI 116.12.
The following is a calculation of
the aggregate market value of the voting and non-voting common equity held by non-affiliates of the Company (“public float”)
under General Instruction I.B of Form S-3:
1185
Avenue of the Americas | 37th Floor
| New York, NY 10036
T
+1.212.930.9700 | F +1.212.930.9725 |
www.srf.law
Securities and Exchange Commission
Division of Corporation Finance
February 5, 2021
Page 2
The following is a calculation of
the aggregate market value of the voting and non-voting common equity held by non-affiliates of the Company (“public float”)
under General Instruction I.B of Form S-3:
Shares of common stock outstanding as of January 22, 2021
702,253,178
Shares of common stock held by affiliates as of January 22, 2021
8,657,651
Shares of common stock held by non-affiliates as of January 22, 2021
693,595,527
Price at which the common equity was last sold on January 13, 2021
$ 0.169
Aggregate market value of the voting and non-voting common equity held by non-affiliates
$ 117,217,644
Under General Instruction I.B.1
of Form S-3, Form S-3 may be used for registrations of offerings of “securities to be offered for cash by or on behalf of
a registrant, or outstanding securities to be offered for cash for the account of any person other than the registrant. . .; provided
that the aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant is $75 million
or more. Instruction. . .The aggregate market value of the registrant’s outstanding voting and non-voting common equity
shall be computed by use of the price at which the common equity was last sold, or the average of the bid and asked prices of such
common equity, in the principal market for such common equity as of a date within 60 days prior to the date of filing.”
Since the aggregate market value
of the voting and non-voting common equity held by non-affiliates of the Company was greater than $75 million as of a date within
60 days prior to the date of filing of the Registration Statement, we believe the Company is eligible to use Form S-3 for both
primary and resale offerings.
However, the Company’s
common stock is quoted on the OTC Pink Market of OTC Markets Group Inc. We are aware of the Staff’s position that to sell
securities at market prices, an “existing trading market” for those securities is required, and that the Staff does
not consider the OTC Pink Market to be such a market for the purposes of satisfying Item 501(b)(3) of Regulation S-K. Therefore,
we propose to amend the Registration Statement to revise disclosure throughout to indicate that the shares of common stock being
offered for sale by the selling stockholders will be sold at a fixed price (which will be specified in the prospectus) until the
common stock is quoted on the OTCQX or OTCQB Markets of OTC Markets Group Inc. or are listed on a national securities exchange.
www.srf.law
Securities and Exchange Commission
Division of Corporation Finance
February 5, 2021
Page 3
We believe that Securities Act Forms
CDI 116.12 is applicable only to Instruction I.B.3 to Form S-3 and is not applicable when following Instruction I.B.1.
If you concur with the foregoing, the Company
will file with the Commission Amendment No. 1 to the Registration Statement to effect those changes and make certain other corrections.
As it is the goal of the Company to have the Form S-3 declared effective as soon as possible, the Company would greatly appreciate
the Staff’s review of this letter as promptly as practicable. If you have any questions with respect to the foregoing, please
contact the undersigned by telephone at 646.810.2173 or by email at bdipaolo@srf.law.
Sincerely yours,
/s/ Barrett S. DiPaolo
www.srf.law