Emerging Markets Law

SEC Publishes Final Regulation A+ Rules

The SEC published in the Federal Register on April 19th its final rules, implementing the Regulation A+ provisions of the 2012 JOBS Act.

We are pulling together a more detailed summary of the Regulation A+ rules, but the bottom line is that the new rules will allow private companies to raise up to $50 million in an exempt, non-registered offering under the rule.

The previous rules, which practitioners know as Regulation A, had been in place for decades and had a $5 million cap on the amount an issuer could raise.

With the demise of the small-cap IPO market (largely eliminated by Sarbanes-Oxley and its attendant costs) many analysts believe that offerings under new Regulation A+ will allow growing companies to raise significant amounts of growth capital as a precursor to a strategic exit or an IPO.

With publication on April 19, 2015, the rules will become effective in 60 days, on June 19, 2015.

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