It seems that lately there has been a noticeable uptick in Regulation A+ activity, including several recent Reg A+ securities offerings where the stock now successfully trades on national exchanges. In light of this activity, we have published a set of FAQs about Regulation A+ securities offerings to help companies better understand this “mini-IPO” offering process, as well as pros and cons compared to a traditional underwritten IPO.
What is Regulation A+?
Regulation A+ is the colloquial name given to a recently adopted SEC rule that amended and expanded a rarely used offering exemption named Regulation A. Regulation A+ can be thought of as an alternative to a small registered IPO and as either an alternative or a complement to other securities offering methods that are exempt from registration under the Securities Act of 1933.
Bass, Berry & Sims Releases Guide for Companies Considering Regulation A+
Our publication is organized in an easy to read FAQ format detailing the two types of Regulation A+ offerings, requirements, process and more.
Below is a sample of the questions that we answer in the document attached.
- Which companies are eligible to use Regulation A+?
- What is the general process for a Regulation A+ offering?
- What are the differences between a Tier 1 and a Tier 2 offering?
- Are there any ongoing reporting requirements?
- Can the company also list its securities on the NYSE or NASDAQ trading?
On a related note, earlier this month the House of Representatives approved a bill that would permit existing SEC reporting companies to use Tier 2 of Regulation A+. (Currently, the exemption is not available to Exchange Act reporting companies.)
If you would like to be mailed a hardcopy, please email us.