Earlier this week, the Securities and Exchange Commission (SEC) announced a new set of rules implementing Title IV of the JOBS Act.
These changes affect Regulation A small public offerings, and are colloquially referred to as “Reg A+”.
The release of these final rules further advances one of the core principles and goals of the 2012 law: to create an environment where emerging enterprises can raise public capital efficiently.
The rules approved by SEC commissioners on Wednesday lift the ceiling on the amount of capital a business can raise in a Regulation A offering from $5 million to $50 million, split into two “Tiers” — up to $20 million in 12 months (Tier 1) and up to $50 million in 12 months (Tier 2). Companies raising less than $20 million will have a choice between Tier 1 and Tier 2.
These are public offerings, much like a traditional IPO, but the regulatory burden on the company making the offering is lower, both when the shares are being sold and afterwards.
The release of these final rules further advances one of the core principles and goals of the 2012 law: to create an environment where emerging enterprises can raise public capital efficiently.
Certain Regulation A+ companies, which meet shareholder limits or revenue and public float caps, will avoid the SEC’s standard reporting regime – Forms 10-K, 10-Q, 8-K . . . . .
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