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SEC Releases White Paper On Regulation A+ Offerings

Yes, Regulation A+ offerings are for real. At RegAMoney.com, many people we’ve spoken to actually believe it may even be too good to be true. That’s why it’s always nice to have the US Securities and Exchange Commission (SEC) weigh in on the subject. After all, the SEC’s about as real as it gets in the capital markets anyway, right?

secwhitepaperOn December 7th, 2016, the SEC released their official whitepaper on Regulation A+ offerings called “Regulation A+: What Do We Know So Far?” which analyzes all Reg.A+ activity from its inception (June 19, 2015) through October 31st, 2016. The main takeaway from this report is that Reg.A+ activity is growing, and both investors and business owners alike are reporting significant momentum with the program. Highlights of the white paper include the following:

  • A total of $190 million has been raised already in qualified offerings. 10 issuers are seeking quotations on the OTC with 17 others wanting to do so in the near future. One issuer is also seeking an NYSE listing as well. It seems many issuers view Regulation A+ as a roadmap to going public.
  • There are currently 147 Regulation A+ offerings filed, accounting for approximately $2.6 billion dollars worth of securities. Out of those 147, 81 have been qualified by the SEC already.
  • Tier 2 offerings seem to be the more popular choice, accounting for 60% of qualified offerings, with the average issuer looking to raise up to $18 million.
  • Equity securities made up over 85% of all Regulation A+ offerings.
  • The majority of Regulation A+ offerings were conducted on a best-efforts, self-underwritten basis.

Is it any wonder why Regulation A+ offerings are making traditional IPOs a thing of the past? Perhaps it’s time for your business to find out how to make Reg.A+ work for you? Contact us at the Reg.A+ Funding Group for more details and to establish a strategy for your success.