On December 19, the Securities and Exchange Commission announced the adoption of rules that will permit reporting companies to use Regulation A for their securities offerings.
Regulation A provides an exemption from registration under the Securities Act of 1933. It was overhauled in 2015 to facilitate capital-raising. The new, improved Reg A+, as it was known, generated positive reviews but was not available to reporting companies. The new rules change that, permitting reporting companies to use Regulation A for offerings of up to $50 million in any 12-month period. The new rules also permit reporting companies to meet the ongoing reporting requirements of Regulation A through their regular Exchange Act reports.
Further details on this matter will be available shortly on The Securities Edge, our securities and governance blog. If you have any questions in the meantime, please contact Gunster securities law and corporate governance practice leader Bob Lamm.
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This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication.
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