12/06/2024
REGULATION A+ MAKES THE GRADE
On April 5, 2012, President Barack Obama signed the JOBS act into law. Standing in front of the gathered media on the White House lawn, the President proclaimed: “this bill will make it easier for you to go public”.
We all know that politicians promise many things to the American people and, more often then not, they do not pan out. This is a story of one that did.
Since its passage more than 12 years ago now, the JOBS act, through its offspring Crowdfunding and Regulation A+ (“Reg A”), has proven to be a game changer for small businesses looking to raise capital. Reg A is by far the least expensive and most efficient means of getting a company publicly traded. Reg A companies are eligible to trade on the OTCQB or OTCQX - both are premium marketplaces for small cap public companies, providing significant transparency and liquidity for smaller public companies and early investors.
Having worked with companies that have raised over $125 million through Reg A during the past 5 years, I have seen firsthand the power and promise of this process. Reg A allows a company to raise capital and/or go public at a fraction of the cost and time it would take to go the traditional IPO route.
Simply put, Mr. Obama was correct and our friends in Washington got it right this time.
Jim Byrd heads the Corporate and Securities Practice Group at Byrd Campbell, PA and specializes in capital markets and going public transactions. Mr. Byrd works extensively with growth companies in the areas of capital formation, public markets transactions, M&A and other general corporate matters. For more information, contact Jim Byrd at (407) 392-2285.
