Saturday, September 29, 2018

What Is Regulation A+ in Public Market Financing?


For over a decade, Tangiers Investment Group, LLC, has been providing companies in the small and micro-cap industry with financing. Tangiers Investment Group, LLC, is knowledgeable of various investment structures that small-cap companies use to get financing, including the relatively new Regulation A+. 

Regulation A+ makes it possible for small companies to raise capital through the stock exchange. This mode of financing was established under the Jumpstart Our Business Startups Act. It means to support business growth and raise employment rates by bringing down regulatory hurdles for companies seeking to raise money in public markets. 

Regulation A+ allows private companies to raise as much as $50 million from public markets through a 12-month public solicitation window. During this time, a company can offer its shares without registering them as securities under Securities and Exchange Commission (SEC) or state security laws. A company interested in pursuing this path should start by assembling a team of initial public offering professionals and afterward submitting an offering memorandum to the SEC confidentially. The company will be required to take action to comply with applicable rules before a review is done and it is allowed to make its offering memorandum public.