Please note that the FAQs About Regulation A+ Securities Offerings was updated on June 28, 2018, to reflect changes associated with the Economic Growth, Regulatory Relief and Consumer Protection Act. Read more about those changes and get the updated publication here.
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.