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Mini-IPOs
More positive Regulation A news
The SEC recently published a series of new Compliance and Disclosure Interpretations related to the newly revised Regulation A. One important development could make Reg A+ that much more useful for companies for mergers & acquisitions and capital-raising purposes.
Reg A+ goes live
'A-Day' has finally arrived: Reg A+ goes into effect
On June 19, Reg A+ (as the SEC's revised Regulation A is known) went into effect. The main benefits of Reg A+ include:
- Companies can raise up to $50 million every 12 months
- Insiders can sell their shares in a Reg A+ offering
- Investors in a Reg A+ offering have immediate liquidity; they can sell their shares once the offering is completed and don't have to hold them for a period of time
- Some Reg A+ offerings are exempt from state securities or "blue sky" laws
- Some Reg A+ offerings are easier to list on an exchange
Crowdfunding's dark side
First crowdfunding fraud enforcement action
The first enforcement action involving a crowdfunding project is instructive because it highlights the significant risks inherent in the crowdfunding process.
Although the FTC took the lead in this matter, I would look for the SEC to step into the primary enforcement role when the JOBS Act equity crowdfunding rules become effective.
Bob's Upticks
Timely news and comments on securities and corporate governance developments.
Warren vs. SEC
Unless you've been off the grid, you've surely read about the kerfuffle between Senator Elizabeth Warren and SEC Chair Mary Jo White.
