30 Jun June 2017: The Month That Reg A+ Arrived

What a month this has been for those of us involved with the Reg A+ movement going back all the way to 2010. Although dozens of Reg A+ deals, raising hundreds of millions of dollars, had closed before this month, virtually none were trading their stock. In the span of a month, however, we now have the first three Reg A+ IPOs trading on national exchanges. Myomo, Inc. (NYSE MKT:MYO), Adomani (Nasdaq:ADOM) and now ShiftPixy (Nasdaq:PIXY) are completed. They raised millions in each deal. MYO and ADOM are trading well above their IPO prices. PIXY’s stock just started trading today. Thus, all three deals started trading this month. Disclaimer: Myomo, the first of these to list on a national exchange, is our firm’s (and my) law client.

Another good thing: broker-dealers led all three deals. Another another good thing: Three different broker-dealers led the three deals. This bodes well for the hoped-for meaningful growth in the number of exchange-listed Reg A+ deals yet to come. While some Reg A+ issuers can raise money without the assistance of underwriters, many others see the benefit of partnering with experienced Wall Street hands to help access capital.

Congrats to my friends at Tripoint Global Equities, Boustead Securities and WR Hambrecht & Co. on paving the way for what we hope will be many more companies taking advantage of the speedier process, lower cost, expanded testing the waters and blue sky preemption offered by Reg A+ as we hopefully bring back the small cap IPO to grow exciting entrepreneurial companies and create jobs. To my fellow Americans, enjoy the 4th!