Reg A+ for Reporting Companies? House Passes Bill

Last week, there was a promising development for Regulation A+ – the House passed the “Improving Access to Capital Act,” which would allow reporting companies to use Reg A+. But wait, there’s more! Under this bill, Exchange Act periodic reports would also satisfy the reporting requirements for Tier 2 offerings. Remember, Tier 2 offerings can raise up to $50 million in a 12-month period.

Check out more details in this Dorsey blog (also see this Stinson Leonard Street blog):

Smaller public companies that are not listed on Nasdaq or the NYSE, and are therefore subject to state securities regulation in respect of their capital raising activities, may find Regulation A+ especially attractive, because an offering under Tier 2 of Regulation A+ is preempted from state securities regulation other than the potential requirement to make a notice filing, consent to service of process, and pay a filing fee.

We don’t know how the Senate will vote, but the House passed the bill with an overwhelming vote of 403-3 – so stay tuned. This development is in addition to Corp Fin’s recent actions to expand confidential IPO reviews and allow companies to omit certain interim financial information from registration statements…

Meanwhile, Jay Knight & William Lay of Bass Berry have put together this nice set of FAQs on Reg A+ offerings…