Written by Edgar Agents on March 9, 2018
Regulatory compliance itself may not be considered fun to most people. What is fun is watching our clients succeed in their growth from a private company into a publicly-traded issuer.
Regulation A+ Fun Facts (alphabetically-almost):
- Allows companies to raise capital using advertising including social media and web platforms.
- Allows companies to sell debt or equities securities to the public.
- Average raise sought on Tier 2 offerings: $28.9 million.
- Can be traded on National Exchanges.
- Can be traded on OTC Markets.
- Companies can “Test the waters” both before and after initial filing.
- JOBS Act advocates saw potential to use Regulation A to democratize the IPO Process.
- Legal process to file a registration statement with the SEC.
- Most common industries utilizing Reg A+: Service, Real Estate, Banking.
- Old Regulation A still requires lengthy “Blue Sky Registration.”
- Reg A+ opportunity commenced in June 2015.
- Regulation A originally adopted in 1960 as a sort of short form registration process.
- Regulation A+ has given companies a mechanism and tools to empower them to reach out to the masses in completing an IPO.
- Relatively new (36 months) niche vocabulary.
- Securities not restricted so the companies can create secondary market.
- There are 54 U.S. jurisdictions, including all 50 states and 4 territories, each with separate and different securities laws.
- Title IV of the JOBS Act that was signed into law on April 5, 2012.
- As of Feb 2018, 290 companies filed initial 1-A offering statements with the SEC.
- As of Feb 2018, 146 companies’ offerings have received “Qualifications” from SEC.
And our favorite Fun Fact…
- As of Feb 2018, one-third of the RegA+ companies that now trade on the NYSE and NASDAQ filed their Form 1-A with Edgar Agents.