Written by edgaragentsdb 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.
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