Showing 9 posts in Regulation A+.
SEC Adopts Amendments to Implement JOBS Act and FAST Act Changes for Exchange Act Registration Requirements
On May 3, 2016, The Securities and Exchange Commission (SEC) announced that it was amending its rules related to the thresholds for registration, termination of registration, and suspension of reporting under Section 12(g) of the Securities Exchange Act of 1934. These amendments implement provisions of the Jumpstart Our Business Startups Act (JOBS Act) and the Fixing America’s Surface Transportation Act (FAST Act).
As part of its commitment to consumer education the U.S. Securities and Exchange Commission has published an Investors Guide to Crowdfunding.
Referring to the upcoming May 16, 2016, start date, the SEC's publication is in an FAQ format, hoping to address questions that investors may have by providing a guide to the SEC's crowdfunding rules under Title III of the 2012 JOBS Act:
Elio Motors (OTCQX: OTCM), one of the first companies to use the expanded offering potential in Regulation A+, has listed its securities for resale on the OTC QX market.
“We are proud to welcome Elio Motors, the first company to raise capital online and go public on OTCQX under the JOBS Act Regulation A+,” said Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group. “OTC Markets Group welcomes innovators and entrepreneurs and is proud to offer the market of choice for the new generation of crowdfunded capital raisings. We look forward to seeing Elio Motors grow its business and its visibility with investors.”
Check out my article on CrowdFundBeat on Using Regulation A+ to Stage Strategic Exits.
For more, please join me at the Regulation A+ Master Class on October 26th.
Three new issuers have their Regulation A+ offerings listed on EDGAR today.
The first is styled as a Reg A+ offering although the securities being offered are actually proposed to be issuers to shareholders of Prime Pacific Financial Services, Inc. when that corporation merges into Coastal Financial Corporation.
The second issuer, Remington Energy Group Corporation, is a developer of oil and natural gas properties, issuing 9% preferred stock in its Reg A+ offering.
The third issuer, Samba Brazilian Gourmet Pizza, is offering 12% convertible preferred stock.
Interestingly, both Remington Energy and Samba Brazilian are underwritten by Alternative Securities Markets Group, a firm that maintains a secondary exchange for private companies that have issued shares under Regulations D and A.
Sara Hanks published a piece entitled "Regulation A: Lessons from the First Quarter" in which she analyzed some of the recent Reg A filings on EDGAR.
Now that Regulation A+ has become effective the first Regulation A+ filings are available through the SEC’s EDGAR filing system.
Regulation A+ is the moniker given to the SEC’s recently-adopted changes to Regulation A which allow for the public solicitation of investors without an effective registration statement.
Under the new rules, issues may raise up to $50 million in a twelve-month period under the streamlined exemption process.
The SEC’s recently-issued Regulation A+ rules (which become effective June 19, 2015) allow issuers to raise up to $50 million with a streamlined prospectus.
The SEC recently finalized its rules to implement changes to Regulation A, now known as Regulation A+, mandated by the 2012 JOBS Act. Attached is a link to our white paper, summarizing the new Regulation A+ rules.
As summarized below, Regulation A+ creates two new tiers and generally liberalizes what issuers can do under the exemption. Tier 1 of Regulation A+ is generally similar to “traditional” Regulation A (as it existed before the new rules under the JOBS Act). Tier 2 of Regulation A+ is an expanded exemption that allows issuers to raise up to $50 million in any 12 month period with minimal ongoing reporting obligations.
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