School is out for the summer, but the U.S. Securities and Exchange Commission is still giving out A-plusses. Specifically, it’s finalized Regulation A+, which allows most private companies to raise up to $50 million by selling their securities to the public. Jack Gravelle of Porter Wright Morris & Arthur notes, “Companies using Regulation A+ can advertise the offering and solicit investors, and anyone can invest (subject to some reasonable investment limits for nonaccredited investors).”
The new regulation comes with some new compliance obligations. Gravelle says an offering statement subject to SEC review, audited financial statements and semiannual reporting are all necessary for any offerings above $20 million. However, he notes these requirements are far less onerous than those for a traditional public offering.
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