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Chapters:
- Selling insiders (founders and early investors) in a Reg A+ offering
- Post offering Reg A+ liquidity
- Conversion from a non-listed security to a listed one
- Listing options for Reg A+
Disclaimer:
The content in this webinar is not and shall not be construed as investment advice. This information is meant to be informative and for general purposes only.
MSC is not a law firm, valuation service, underwriter, broker-dealer or Title III crowdfunding portal and we do not engage in any activities requiring any such registration. We do not provide advice on investments. MSC does not structure transactions. Do not interpret any advice from MSC staff as a replacement for advice from service providers in these professions.
Rod Turner
Rod Turner is the founder and CEO of Manhattan Street Capital, the #1 Growth Capital service for mature startups and mid-sized companies to raise capital using Regulation A+. Turner has played a key role in building successful companies including Symantec/Norton (SYMC), Ashton Tate, MicroPort, Knowledge Adventure, and more. He is an experienced investor who has built a Venture Capital business (Irvine Ventures) and has made angel and mezzanine investments in companies such as Bloom, Amyris (AMRS), Ask Jeeves, and eASIC.
www.ManhattanStreetCapital.com
Manhattan Street Capital, 5694 Mission Center Rd, Suite 602-468, San Diego, CA 92108.
THIS TEXT TRANSCRIPT HAS ERRORS IN IT THAT WERE CAUSED BY THE SPEECH TO TEXT CONVERSION SOFTWARE WE USED. DO NOT DEPEND ON THE TEXT TO BE ACCURATE. WATCH THE RELEVANT PARTS OF THE VIDEO TO MAKE SURE YOU ARE PROPERLY INFORMED. DO NOT DEPEND ON THIS TEXT TRANSCRIPTION TO BE ACCURATE OR REFLECTIVE OF THE STATEMENTS OR INTENT OF THE PRESENTERS.
So one of the advantages of Reg A+ offerings at the parent company level is that you are allowed as the owners of the company or your, your existing investors are allowed to be selling insiders in a Reg A+. So up to 30% of the capital that you raise, a maximum of 30% can be selling insiders, be they founders or investors. So that's a nice flexibility. And the fact is that conducting a Reg A+, unless you as the company CEO prevent this, unless you put in a lock, the Reg A+ unlocks all of your investors that have owned their stock for more than a year, once they've exceeded their rule 1 44 holding period. So you may be raising money in a, in an offering with this particular security here, but all of your investors are made liquid, which isn't to say that it's easy because you haven't listed their security, but you can provide, you could provide a conversion from the security they own into the one that's listed as an example. And of course, if you go public to a major exchanges, then all of the preferred, a ABC class of investors, all of them convert over. So insider selling is, is, is, is allowed in a Reg A+ in a post join the Reg A+. And afterwards there's more detail to that. We have a fact on that, on the MSC site, and we have a whole webinar about liquidity in Reg A+ as well. You, you can search the top right box, search box on the MSC site. We'll get you that content. I said, you don't have to list your company by doing a Reg A+. There are some limited ways of providing direct liquidity to investors if you choose to. I don't find them to to be terribly attractive, but they do exist. The main entity listing options, I said, you can don't list anywhere. You can list on an ATS, the alternative trading system on the otc, the NASDAQ or the, or a direct listing. They're not. One of the nice things about the, it's not an atc, it's an ats. One of the nice things about an alternative trading system is that they don't have shorts and they don't have naked shorts. A lot, a lot of companies share price gets decimated. Yeah, a lot of companies share price gets decimated by naked shorts from broker dealers that are allowed to do that. So you are vulnerable to that on the Nasdaq, on the NYSE or on the OTC markets. You are not vulnerable to that on the ats. So an ATS is a simpler opportunity for listing for that reason.
THIS TEXT TRANSCRIPT HAS ERRORS IN IT THAT WERE CAUSED BY THE SPEECH TO TEXT CONVERSION SOFTWARE WE USED. DO NOT DEPEND ON THE TEXT TO BE ACCURATE. WATCH THE RELEVANT PARTS OF THE VIDEO TO MAKE SURE YOU ARE PROPERLY INFORMED. DO NOT DEPEND ON THIS TEXT TRANSCRIPTION TO BE ACCURATE OR REFLECTIVE OF THE STATEMENTS OR INTENT OF THE PRESENTERS.