Written by Edgar Agents on April 4, 2018

Regulation A+ offerings have had a slow, but steady growth. Certainly, Edgar Agents have contributed greatly to the process (and success) for many companies. In fact, as of iPic’s February IPO, 33% of the RegA+ offerings that went effective on the NYSE and Nasdaq exchanges is our work.

Key Expenses for a Regulation A+ Offering:

Securities attorney fees. Much like filing a traditional IPO S-1, filing a Reg A+ Form 1-A necessitates an experienced securities attorney. It’s a huge amount of excruciating and detailed paperwork. The range for this will be in the $25,000 to $80,000 range.

Accounting and auditing fees.  All Regulation A+ offerings require two years of audited financials. Tier 2 requires more effort in terms of continuing reporting, adding to cumulative costs. Firm dependent, you can expect a range of $12,000 to $30,000.

Broker-dealer and marketing. Generally, these are negotiated “success” fees, commonly with a range of 5% to 10% of the actual raise. This may seems high, but these teams can literally make your offering a triumph. In addition to this success fee, you can also expect a small retainer.

Edgar Agents’ filing fees. There are three points to express about our fees:

  • Our workload is in sync with your securities law firm’s… aka the length and complexity of your paperwork affects our fee. Also, this is where having an experienced Reg A+ attorney truly matters: you’ll have fewer edits, blacklines and back-and-forth comments with the SEC. Time and length is money. So far, our fees to Reg A+ companies have ranged from $5,000 to $30,000, including high-end hardcopy printing.
  • The good news here is that we quote – and guarantee – you a Locked Rate. No surprises, hidden costs or rush charges. A flat fee to get the job done.
  • The better news is that Edgar Agents has an Abort Fee. Simply, if your Reg A+ cannot become effective, you are only charged a single-digit percent of your Locked Rate. We understand the fluidity and risk of what you’re going through. We’ll wait, if we need to, as you continue towards effectiveness. After all, we DO hope to work with you (EDGAR & XBRL) once you are public!

As you do all the math above, executing a Reg A+ is not a shot-in-the-dark, quick and easy fundraiser. Less costly than an S-1, it’s still a capital expense and MUST be a well thought out path to the public markets.