25 Dec New Regulation A+ Proposal: Promising!

I am just starting to get through the recently released 300+ page rule proposal from the SEC on so-called “Regulation A+.” The Jumpstart our Business Startups (JOBS) Act required the SEC to change rules to allow simplified IPOs under old Regulation A to be more available by increasing the maximum to be raised from $5 to $50 million and by eliminating state securities review of these offerings. In exchange, more information was likely to be mandated.

I will prepare a more comprehensive review once my holiday time review is complete. But initially it appears the SEC delivered pretty much as hoped, and even went a little further in making new Regulation A+ (yours truly accepts responsibility for coining this term a year ago at an SEC conference) potentially a very attractive option for companies going public.

The two key issues they had flexibility on: who investors are and whether any state review will be permitted. Rather than having any semi-accredited limitation, the proposal focuses on what percent of your income and net worth is being invested, allowing even “unaccrediteds” to participate. And they completely pre-empted state review. In exchange, they added quarterly and annual filings after the offering and some other stuff. I’ll update you more when I’m done getting through it! Happy holidays and a happy, healthy and prosperous New Year to all!!!!