SEC Adopts Expedited Review Procedure for Exemptive Applications under the Investment Company Act

By | 08/31/2020 | 1:42 pm ET

On July 6, 2020, the SEC adopted amendments to rule 0-5 under the Investment Company Act of 1940 (“Act”) to make the process more efficient, transparent, and cost-effective. The amendments include: An expedited review procedure for routine applications An internal timeframe for review of other applications Establishing new rule 17 CFR 202.13: The internal time frame (for SEC staff) for applications excluding the ones submitted under expedited review is 90 days for initial filing and each of the first three amendments. For subsequent amendments, it is 60 days. Overview: The Commission adopted the changes based on the requests for exemption…

SEC Adopts Expedited Review Procedure for Exemptive Applications under the Investment Company Act
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8 Reasons Companies Should Not Use a Third-Party Platform for their Reg A+ Offerings

By | 05/26/2020 | 2:17 pm ET

The SEC adopted amendments to Regulation A (now known as Regulation A+) on March 25, 2015, under the “Jumpstart Our Business Startups” Act (JOBS act). Reg A+ allows small businesses to raise capital from investors through its exemption from registration provisions. Reg A+ is divided into two tiers: Tier 1 allows securities offerings of up to $20 million in 12 months and Tier 2 up to $50 million in 12 months.  We would like to analyze the difference between hosting a Reg A+ offering on a third-party crowdfunding platform vs the company’s website. Reg A+ Offering:  Third-party Platform vs. Company…

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Top 9 Tips to Conduct a Successful IPO

By | 05/26/2020 | 2:01 pm ET

In our research, we came across an article that had a graphical illustration of declining IPOs from 1999 to 2018, and astonishingly it is almost 60%. Nearly all private companies aim to go public because of the associated advantages eventually, but only a select few have been able to do so. 2019 was comparatively a successful year with Unicorns making their debut, continuing in 2020. Unfortunately, the current pandemic in the form of the novel coronavirus Covid-19 continues to keep us gasping for breath, but we are optimistic about future IPOs after the epidemic ends. So here are the top…

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How to do a Reg A+ IPO on NASDAQ and NYSE

By | 10/03/2019 | 5:59 pm ET

When listing on NASDAQ or NYSE, companies have the option to perform a Reg A+ IPO IPO as an alternative to the traditional underwriter method. There are two tiers of Reg A+. The first allows companies to offer a maximum of $20 million annually, and requires an SEC filed offering circular. The second allows companies to offer a maximum of $50 million annually, also requires the provision of an SEC filed offering circular, but allows companies to preempt blue sky laws. Most Reg A+ offerings are Tier 2. Both tiers require some EDGAR filing. A Tier 2 offering, unlike a Tier…

How to do a Reg A+ IPO on NASDAQ and NYSE
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Traditional Crowdfunding VS Equity Crowdfunding

By | 03/05/2019 | 9:24 am ET

If your company has always thought about crowdfunding as only a means to fund charitable causes, then it’s about time you changed that perception. Since the coming of Indiegogo in 2008 and Kickstarter the following year, business owners have become exposed to how effective crowdfunding can be as an option to raise funds. After all, who ignores an industry like crowdfunding estimated to grow to nearly $10.9 billion in total funding in 2015 from $1.5 billion in 2011. Equity crowdfunding is the latest model making waves in the crowdfunding industry since the passing and implementation of the Title II of…

Traditional Crowdfunding VS Equity Crowdfunding
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Reg A+ Now Available For All Public Reporting Companies

By | 01/23/2019 | 7:07 pm ET

On December 19, 2018, the Securities and Exchange Commission (SEC) issued final rules that they will now allow public reporting companies to utilize Regulation A+ (Reg A+). Reg A+ creates a registration exemption for public offerings, based on two separate offering tiers. Tier 1 applies to offerings up to $20 million in a 12-month period, while Tier 2 applies to offerings up to $50 million in a 12-month period. The extension of Reg A+ had been signed into law since May 24, 2018, as part of the Economic Growth, Regulatory Relief, and Consumer Protection Act. However, the SEC did not adopt…

Reg A+ Now Available For All Public Reporting Companies
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Proposal to Raise Reg CF Cap to $20 Million

By | 08/08/2018 | 3:33 pm ET

Many prominent companies and Regulation CF platforms have expressed concern over the limited amount of capital that issuers can raise under Reg CF: $1 million. On July 19, 2018, they sent a detailed letter to the SEC requesting that they raise the Reg CF cap to $20 million. In general, the Reg CF industry feels that the current $1 million cap is costing issuers time and money meeting regulatory requirements─they add that some issuers have to conduct a second offering to raise sufficient startup capital. This concern matches with SEC Chairman Jay Clayton’s remark concerning retail investors. Before the industry…

Proposal to Raise Reg CF Cap to $20 Million
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