User:WorldMostDangerousLawyer/Regulation A+
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Regulation A+ new article content ...
Regulation A+ implements changes to fundraising by small entities mandated by the Jumpstart Our Business Startups Act as amended by the governing a new class of securities offerings in two tiers, Tier I up to $20 million annually and Tier II up to $50 million annually.[1]
The regulations partially preempt state blue sky lawsand permits sales to both accredited investors and the general public.[2][3]
Overview
[edit]Congress determined that the present Regulation A was underused and that to increase smaller companies access to capital, Regulation A should be simplified. [4] The resulting regulations amend Regulation A and include several new means for small firms to raise capital. These include:
(a) partial preemption of state blue sky laws[5]
(b) permitting "testing the waters" by allowing the use of all forms of media to solicit non-binding expressions of interest [6][7][8]
(c) creating liquidity by permitting secondary sales of up to 30% of the value raised [9]
The regulations went into effect on June 29, 2015, and a stay requested by the State of Montana was denied by the SEC. [10]
Eligibility
[edit]Issuers must be incorporated in the United States or Canada. Fractional interests in oil and gas, "blank check companies," issuers delinquent in reports in the past 2 years, asset based securities and those disqualified as bad actors [11] under Rule 262 are barred.
Tiers
[edit]Tier I permits raising up to $20 million. Tier I issuers must comply with state blue sky laws.
Tier II permits raising up to $50 million. Tier II pre-empts state blue sky laws except for registration of offers. Tier II permits sales to
References
[edit]Jumpstart Our Business Startups Act
External links
[edit]Amendments for Small and Additional Issues Exemptions under the Securities Act [12] Amendments to Regulation A: A Small Entity Compliance Guide [http://www.sec.gov/info/smallbus/secg/regulation-a-amendments-secg.shtml