Regulation A+ allows companies to raise up to $50,000,000 from the public by offering securities using one of two tiers. Tier I of Reg A+ allows companies to raise up to $20,000,000, and Tier II allows companies to raise up to $50,000,000. Both Tiers require the filing of a Form 1-A and an offering circular disclosing detailed information about the company and the securities being offered. The offering must be reviewed and qualified by the SEC before it can be sold. Because of the significant amount of expense that goes into preparing a proper offering circular and other official documentation, companies can “test the waters” by soliciting indications of interest from prospective investors for a Tier II offering prior to preparing and filing offering materials. Each Tier of Regulation A+ has specific benefits and restrictions that must be considered before deciding if it’s the right choice for a business. More detail about Regulation A+ offerings and how they compare to other exemptions can be found HERE.
