Freddy and Fabrizio, co-founders of F&F Inc. want to raise capital to franchise their local retail chain, eventually on a national level. They’re discussing the benefits of following Regulation A+ vs Regulation CF. Here’s how they see each scenario affecting F&F. Freddy: So Fabrizio, Reg A+ gives us optional access to public markets. The benefits are that we can raise up to $75 million and the reporting requirements are much softer than an IPO. Plus, we can raise money from non-accredited investors with lower fees and free-trading shares if we decide to go public later. I like that. Fabrizio: I hear…
What is Regulation A+ vs Regulation CF?
The Best Options for Raising Capital for Small Public Companies
By admin | 11/06/2020 | 11:31 am ET
There are two primary methods for any company raising money, through debt and equity offerings. Yes, nature and description may change, but the formula remains the same. Debt and Equity Financing In finance, “Debt Financing” and “Equity Financing,” are categorized under “Security Offerings” with certain exceptions. Expert views vary when it comes to the best options for a public company financing, and if you were to ask us, we would say that there is no fixed solution to this. While debts work great for some companies, equity is more suitable for others. To help make a sound decision, we have…
8 Reasons Companies Should Not Use a Third-Party Platform for their Reg A+ Offerings
By admin | 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…
How to do a Reg A+ IPO on NASDAQ and NYSE
By Josh Scofield | 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…
Reg A+ Now Available For All Public Reporting Companies
By Dan Carter | 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…
