Six Reg A+ offerings filed with the SEC yesterday,
but a total of 181 offerings have filed as of January 31, 2017 . The SEC qualified
103, while 28 issuers reported selling $259 million in aggregate using the Reg
A+ filing process. As the number of companies using Reg A+ indicates, companies
are choosing this option more and more for a number of reasons. We explain a
few of them in this blog post.
Earlier this year, we quoted an SEC
white paper stating that 147 Regulation A+ offerings filed statements as of
October 31, 2016, and were seeking up to $2.6 billion in financing. We also
wrote in our blog how in the 16 months since the amendments became effective,
Regulation A+ securities offerings had outpaced the past rate of Regulation A
activity. Perhaps these three motives are the root cause of its popularity.
1.With Reg A+, companies can still raise capital
when planning an IPO to the NASDAQ, but can opt to use Reg A+ mid-stream if the
NASDAQ minimum for listing is not reached. Companies will then avoid thousands
of dollars wasted on offerings that might have otherwise been prematurely
abandoned.
2. One other benefit of using Reg A+ for your IPO is
that it allows you to go public directly to the NASDAQ, NYSE, the OTCQB or
OTCQX, while venture capitals cannot. It has been reported that venture
capital firms are more interested in companies that are more likely to deliver a
100X return in about 6 years, but investors still seem pretty interested in
companies that might deliver a lesser return. VC firms therefore completely
miss an opportunity to work with a growing market.
3. Companies are also pleased to know that Reg A+ allows
them to openly market their company instead of undergoing the usual quiet
period. Companies get to promote their brand, thus increasing customer interest
and attracting strategic partnerships early on in the process.
As a result, Edgar Agents has started to offer new
services to its repertoire, in addition to our core products, that are specific
to Reg A+ requirements such as marketing services. We have always offered
services that comply with the latest filing requirements and now file all the
necessary forms for Regulation A+ mini IPOs as well. We also provide financial
printing and newswire capabilities.
Edgar Agents is always happy to discuss your
specific filing needs and would like to hear from you today. Call our office at
732-780-5036, visit our website www.edgaragents.com
or simply send us a message on any of our social networks: LinkedIn, Twitter
and Google+, to discuss your next Reg A+ filing.
