As we all know, nothing goes as easy as planned, and this certainly applies to Regulation A+ deals as well. Although Reg. A has been around for quite some time, it’s only recently that companies have begun to navigate the waters under the new “Regulation A+”, which is generally how people are referencing the JOBS Act of 2012.
We are here to tell you that not only is Regulation A+ poised to be a game-changer, but we’re also seeing a ton of activity from companies such as Pot Estate Holdings, Inc. looking to implement it to raise money as an alternative to the “business as usual” strategies of the past.
Here are 10 key items to consider regarding Regulation A+ funding, which we affectionately refer to as an “IPOtogo”:
- Get an underwriter! These broker-dealers will help you market your deal, close transactions and manage shareholder communication.
- These underwriters and syndicate brokers need to be paid, but it’ll be well worth it if they are proactively selling potential investors to your deal.
- When you file your original paperwork to the SEC, you’re going to receive a ton of comments from them. Use the services of professionals such as the Reg A+ Funding Group to navigate this process.
- Your legal team will be very important to the success of your offering while pushing it through the appropriate channels.
- Don’t skimp on your marketing budget as your deal obviously must be sold to potential investors. No matter how great your project, people have to know about the deal in the first place.
- Expect a period of more than 6 months before you file your Form 1-A to closing on the funds. It will not happen overnight!
- Blue sky laws are important. Deal with them directly and immediately from initial offering to sales in the aftermarket.
- Since many brokerage firms are very unfamiliar with Regulation A+, you can expect problems getting investor shares deposited unless you go with a brokerage house that’s familiar with Reg.A+ and really knows what they’re doing.
- Investors probably aren’t familiar with Regulation A+ either. They need to know how their shares can and cannot be traded on a secondary market.
- Keep your records straight and have them in good auditable order.
Ready to get started? … or at least find out how Regulation A+ may be helpful to your business? Contact us for a complimentary no-obligation consultation today and we’ll spell it all out for you.