Regulation A+ Q & A Primer With Securities Attorney Samuel S. Guzik

Regulation A+ Q & A Primer With Securities Attorney Samuel S. Guzik

Judging by the press reports, the SEC’s adoption of Final Rules implementing Title IV of the JOBS Act of 2012, commonly referred to as Regulation A+, has made a big splash in most quarters. In simplest terms Regulation A+ is intended to provide a simpler and lower cost means by which private companies can access the public equity markets, up to $50 Million in a 12 month period, and thereafter meet the ongoing legal requirements of being a public company. The SEC was provided with the legislative framework for this new avenue for capital formation for SME’s, and the end product is a detailed set of rules contained in a 400+ page Release.

So I thought it might be helpful to address new Regulation A+ by answering some basic questions. What follows for those who care to read on is a short primer on Regulation A+, in a Q. and A. format. Though some might prefer a pretty matrix with lots of boxes and colors, my clients tend to come with questions, not boxes.

So what’s that picture of the banana doing up there? (No, I am not Mae West – and I am not that happy to see you.) You see, since the 1990’s “smaller IPO”s in the range of $25 – $50 Million, have been a rare occurrence. And most companies simply never make it to a stage where they are ready for a Facebook style IPO. But one of the industries most severely impacted by the decline in the IPO market generally has been the biotech industry. Indeed, the largest international biotech trade association just issued a press release praising the final Regulation A+ rules. And that big banana – well it is situated right in the heart of one of the most fertile geographic areas for biotechnology – Boston – where I expect there is a great deal of jubilation over the arrival of Regulation A+.

For those who care to read on about Regulation A+, simply click on this link and it will take you to the Regulation A+ Q and A on my Blog, The Corporate Securities Lawyer Blog (www.corporatesecuritieslawyerblog.com)

The long awaited release of the Regulation A+ rules are finally out. This will be welcome relief for small businesses that require development or expansion capital for which banks generally will not lend. The link to Guzik's Q and A is very informative.

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