Regulation A+ deals are not slam dunk, cut and dry, hassle-free vehicles. They are costly and time consuming, and therefore may need money beforehand before the process even starts. A 506(b) is a private placement designed to raise capital for a business. 506(c) refers to advertised private placements. The terms of each can be very investor friendly in that issuing companies can offer discounts of 15% (or much more) of their Regulation A offering price.
High interest rates and discounted Regulation A pricing are excellent ways to get investors aboard your company’s vision for the future to initiate (and complete) their Regulation A offering plan.
This is not small time money either. We’re talking in the $500K to $1MM range for the amount of money used to fund expenses related to a Reg. A offering and for working capital expenses throughout the process. Investors want to see the Regulation A+ offering close within several months from the private placement mentioned. No one wants to wait years for this to happen. That’s what makes these “bridge loans” very attractive.
What this all amounts to is that there are many ways investors can get involved with Regulation A+ offers, well before the actual documentation is filed and gets approved. Contact us today to find out more.