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How to use Regulation A+ to raise up to $50 million capital

How to use Regulation A+ to raise up to $50 million capital

When the Securities and Exchange Commission (SEC) approved the changes to Regulation A, it has generated lots of debate and discussion. The new rules on Regulation A+  took effect last  June 19th. The rules are expected to create a new category of quasi-IPO. This will enable companies to raise money from the public at less expense compared to a regular IPO.There are however some important points to keep in mind. The old Regulation A had such low limits for fundraising as well as high compliance costs that it was rarely used. The limit was only $5 million, and companies had to file offerings in every state in which they were selling the securities. The new Regulation A+ creates two categories namely, $20 million for the existing Tier 1, and a new Tier 2 – raising up to $50 million, of which $15 million can be offered to existing shareholders. Tier 2 ... Read More »

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