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Regulation A+ Offering, Form 1-A Documentation Explained

As predicted, Regulation A+ crowdfunding offerings – or “IPOs to go” as we like to call them – are becoming more and more popular. If your company is looking to raise capital, looking into doing a Reg.A+ may be the way to go. However, the process is not cut-and-dried and needs to be registered and approved by the SEC. That’s why many companies turn to experienced consultants to drive this process forward.

ipocollageRegulation A+ offerings are filed via EDGAR with the SEC on a document called “Form 1-A” and it’s very important to understand its structure and function. Form 1-A consists of 3 main parts including the notification, the offering circular, and the exhibits.

  • In general, the notification portion of the form provides basic information about the offering in general, including issuer name and address, eligibility information, confirmation that “bad actor” disqualifications do not apply, the jurisdictions where the securities are to be offered, and information about any previous securities related to the deal that may have been sold.
  • The offering circular is the meat of the document which contains what you would read in the prospectus in the registration statement, including information about both the issuer, the offering itself, and all the risk factors involved.
  • Finally, the Exhibits portion of the form includes the exhibit list referenced in the offering statement to support the data and vision detailed in the offering circular. These documents can be quite complex.

If an issuer has not previously sold under Reg.A (or any other registration statement), they can submit Form 1-A on a confidential basis. As you might expect, correctly filling out Form 1-A is crucial for your offering’s success. It pays to consult with industry professionals to prepare and submit your documentation to the SEC completely and correctly. That’s where the Reg.A+ Funding Group comes in.

Any company that voluntarily reports (or used to report but suspended their reporting via Form 15) is eligible for Regulation A+ crowdfunding. Subsidiaries of reporting companies are also eligible (as long as the parent reporting company is not a guarantor or co-issuer of the offering). And shell companies are eligible as long as they’re not a “blank check” company.

Questions about your eligibility? Please contact us. Are you ready to find out if a Regulation A+ offering is right for you? Contact the Reg.A+ Funding Group for a no-obligation confidential consultation. Tap into proven industry experience. You’ll probably be amazed at what you’ll learn!