What Is A Reg A Offering?

Reg A offerings are frequently called a “mini-IPO”. Regulation A has two tiers for offerings: Tier 1 allows up to $20 million in a year, while Tier 2 allows up to $75 million. Companies can choose to follow the rules for either tier depending on how much capital they want to raise. The Regulation A+ (Tier 1) program provides the capability for issuers to engage in general advertising and solicitation of the offering to potential investors and also allows both accredited and non-accredited investors to participate.

A Regulation A+ offering is an advanced type of private securities sale that provides companies with the significant benefits typically associated with a public offering while requiring notably less preparation and being more affordable compared to a full-blown Initial Public Offering (IPO). This innovative approach not only simplifies the capital-raising process but also offers unique advantages, such as the ability to have freely-trading securities. Furthermore, Regulation A+ allows current investors to sell their shares, creating increased liquidity and opportunities in the market.

What Are The Rules For Regulation A?

There are certain basic requirements that apply to both Tier 1 and Tier 2 offerings, which include essential company eligibility requirements, bad actor disqualification provisions, various disclosure obligations, and several other important matters. Moreover, additional specific requirements apply to Tier 2 offerings, which include limitations on the amount of money that a non-accredited investor may invest in a Tier 2 offering, as well as mandatory requirements for audited financial statements, and the regular filing of ongoing reports. Importantly, issuers engaged in Tier 2 offerings are not required to register or qualify their offerings with state securities regulators, which streamlines the process for them considerably.

Our REGULATION A services include the structuring and creation of the Regulation A offering. All of the applicable offering documents and filing the FORM 1-A and required exhibits through the SEC’s Edgar filing system.

We offer flat fee pricing and provide you with our broker contacts, fund audit and administration contacts, banking contacts and everything else you need for a successful offering.

What Are The Differences Between Reg A and Reg D?

Randall & Associates has experience helping fund managers and businesses raise money the right way, which includes making sure each compliance document is correctly and timely filed with the SEC and the applicable states. Contact us today for a free strategy session on the best way to raise money and manage your next investment fund or start-up.

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