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OTC Markets Blog

Latest commentary on Market Structure, Compliance, Small Cap and Reg A+ issues, including insights on the news and trends that affect the public markets.

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Testing the Waters

Regulation A 2019 Progress Report

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”

How Warm is the Water?

At its core, raising capital is about building relationships.  Companies seek investors who clearly understand their stories, want to help them achieve their objectives and believe in their investment potential.  Thus, companies may want to view Testing the Waters (“TTW”) in a broader context than just “how much can I raise?” TTW can be a part of a company’s overall investor relations strategy.  It’s the courtship before marriage.   Continue reading “How Warm is the Water?”

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