Born out of the 2012 JOBS Act, Regulation A (Reg A) was amended to provide a streamlined pathway for companies to raise up to $50 Million while benefiting from general solicitation, ‘testing the waters’ and state Blue Sky preemption. SEC reporting companies were originally excluded from using Reg A; however, in January 2019, the SEC adopted new rules to expand Reg A to SEC-reporting companies, enabling public companies to raise capital in a similar manner to a traditional IPO via an S-1 registration or an S-3 shelf registration. Continue reading “Regulation A 2019 Progress Report”
Cromwell Coulson’s Lifetime Achievement Award and Dedication to STANY
April 19, 2018
The Security Traders Association of New York (STANY) honored OTC Markets Group CEO Cromwell Coulson with its 5th Annual Award for Lifetime Achievement and Dedication to STANY at its 82nd annual conference. Cromwell joined CNBC’s Bob Pisani for a Fireside Chat to talk about the evolution of OTC Markets Group and the contributions of industry professionals that have leveraged their knowledge for the benefit of both the trading community and investors.
Building a Sustainable Public Company with Longer-Term Investors
What is Regulation A+?
This is not a traditional IPO. While you are allowed to use a Reg A+ offering to take your company public and list it on the NASDAQ or the NYSE, that is not a requirement, and it is not the path most companies will take because the reporting costs from being public on the big boards are very high. Continue reading “Is Regulation A+ an Initial Public Offering – IPO?”
The high cost to complete an IPO onto a U.S. stock exchange – on average $2.5 million*, combined with the declining bank appetite for small-cap IPOs, is forcing many small companies to stay private longer. However, the public markets offer tremendous benefits for small-cap companies seeking to raise capital and grow their businesses. Fortunately, an IPO isn’t the only method for small companies to gain the benefits of a public market. Continue reading “Think an IPO is the only way to access the Public Markets?”
Recently, at a Crowdfunding conference in L.A., I met with three company CEOs all in the process of doing Reg A+ deals. When I asked them about their plans for secondary trading, I was surprised by the answer. All three responded with some variation of “we don’t plan on going public – we will just issue the shares, there won’t be a market.” Continue reading “Don’t Look Now: You’re Public”
OTC Markets Group recently held a Regulation A+ Bootcamp at our OTC Market Center in Manhattan to educate public and private companies about how to do a successful Reg A+ offering and go public under the Jumpstart Our Business Startups Act (JOBS Act). Continue reading “6 Key Takeaways from Our Reg A+ Bootcamp”
As part of the JOBS Act, Congress and the SEC updated and expanded Regulation A (Reg. A) to reduce some of the road blocks to capital formation faced by startups and emerging growth companies. Many have argued that regulations implemented over the past two decades have removed the economic incentives for broker-dealers to engage in smaller offerings. Continue reading “The Road Not (Yet) Taken”
In June 2015, the SEC adopted amendments to Regulation A (“Reg. A+”), easing the burdens emerging and growth companies face in raising capital. With all of the recent excitement surrounding Reg. A+, we wanted to share some thoughts and what we’re noticing in these early stages. Continue reading “Regulation A+ Thoughts and Insights”