Tag Archives: Tier 2

Crowdfundraiser.com Readies Equity Crowdfunding Platform to Host Tier 2, Title IV, Regulation A+, Mini-IPOs

4 May

Crowdfundraiser and its partners, including attorneys and accountants, will be prepared to provide Form 1-A filing and audit solutions for businesses looking to perform Tier 2 Regulation A+ crowdfunding

 By Robert Hoskins

Seattle, WashingtonCrowdfundraiser.com announced the addition of services geared toward companies looking to file Reg A+ offerings. Starting sometime in June, when the ability to file Regulation A+ becomes completely effective, Crowdfundraiser and its partners, including attorneys and accountants, will be prepared to provide Form 1-A filing and audit solutions for businesses looking to perform Tier 2 Regulation A+ crowdfunding.

Crowdfundraiser Readies Equity Crowdfunding Platform to Host Tier 2, Title IV, Reg A+ Mini-IPOs

Crowdfundraiser Readies Equity Crowdfunding Platform to Host Tier 2, Title IV, Reg A+ Mini-IPOs

Even though the full release of Regulation A+ will not occur until June, the team at Crowdfundraiser is ramping up to prepare several companies who’ve already expressed interest. Each offerer is intent on raising the maximum amount from the offering at $50 million. “We’re already seeing a great deal of interest in Regulation A+ offerings, but we’re being very selective on the types of companies and operators with whom we’re engaging,” says Jake Durrant, Managing Director.

Because the law itself confines the type, size and structure of each deal and company, there is already a narrow definition of the businesses Crowdfundraiser can work with. Furthermore, the Crowdfundraiser team has also opted to ensure the opportunities with which they assist have a high probability of being fully subscribed. “While we have the ability to scale our processes, we would prefer to work with the highest quality deals we can,” says Durrant. “Doing so increases the probability of success and creates the best situation for both investors and entrepreneurs alike.”

Crowdfundraiser is intent on only providing services for companies looking to do Tier 2 offerings with Regulation A+. “We feel Tier 1 Reg A offerings are not only too small, but are almost a non-starter due to the fact that Tier 1 offers don’t preempt the state Blue Sky Laws,” Durrant says. “This may pigeonhole us somewhat, but it helps define where we’ll play and where we won’t.”

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SEC Approves Regulation A+ Rules under Title IV of the JOBS Act that Pre-empts State Law and Paves the Way for Selling Up to $50 Million of Equity Crowdfunding Securities to Unaccredited Investors

25 Mar

There are no general solicitation restrictions so companies can freely advertise, market and publicize offerings at demo days, trade shows, mass media and via social media networks

 By Robert Hoskins

Washington, D.C. – The Securities and Exchange Commission adopted final rules unanimously to facilitate smaller companies’ access to capital.  The new rules provide investors with more investment choices.The new rules update and expand Title IV Regulation A+, an existing exemption from registration for smaller issuers of securities.

SEC Approves Regulation A+ Rules under Title IV of the JOBS Act

SEC Approves Regulation A+ Rules under Title IV of the JOBS Act

The rules are mandated by Title IV of the Jumpstart Our Business Startups (JOBS) Act.The updated exemption will enable smaller companies to offer and sell up to $50 million of securities in a 12-month period, subject to eligibility, disclosure and reporting requirements.

“These new rules provide an effective, workable path to raising capital that also provides strong investor protections,” said SEC Chair Mary Jo White.  “It is important for the Commission to continue to look for ways that our rules can facilitate capital-raising by smaller companies.”

The final rules, often referred to as Regulation A+, provide for two tiers of equity crowdfunding securities offerings:

  • Tier 1:  Offerings of securities of up to $20 million in a 12-month period, with not more than $6 million in offers by selling security-holders that are affiliates of the issuer; and
  • Tier 2: Offerings of securities of up to $50 million in a 12-month period, with not more than $15 million in offers by selling security-holders that are affiliates of the issuer.

Both Tiers are subject to certain basic requirements while Tier 2 offerings are also subject to additional disclosure and ongoing reporting requirements.

The final rules also provide for the preemption of state securities law registration and qualification requirements for securities offered or sold to “qualified purchasers” in Tier 2 offerings.

Tier 1 offerings will be subject to federal and state registration and qualification requirements, and issuers may take advantage of the coordinated review program developed by the North American Securities Administrators Association (NASAA).

The rules will be effective 60 days after publication in the Federal Register.

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