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Compare a reverse merger with Reg A+

Is this like a reverse merger or buying a public shell?

Buying a public shell is one way that mid sized companies raise equity capital to grow. It is expensive, complex, and it is sometimes difficult to get over the negative history of the old public company that failed in the past (that failure is why the shell was available to be purchased).

In comparison, Regulation A+ offerings are much simpler, less expensive and they are fresh and new.  The limit of $50 million* per year per company in Reg A+ does mean that some companies that are raising larger amounts of capital will still need to go the reverse merger route.

Manhattan Street Capital will only fundraise for companies that have entered our “TestTheWaters TM ” program and been rated highly by our members, achieving a non-binding IndicationOfInterest(TM) $ level from our investors that demonstrates that the company will be over-subscribed.

Under the new regulation companies can raise up to $50 million* per year from individual, “Main Street” investors.

*For businesses that can segment their market by geographic regions, it is possible to make multiple simultaneous offerings for one entity.

For example, a company can establish say six regions of the US and raise capital for each region simultaneously using a dedicated Reg A+ for each region. In this example, the maximum per year would be 6x50 = $300 million per year.


For more detail about Regulation A+, click this link to see the ebook on Reg A+ written by our Regulation A+ attorney, Mark Roderick:

Or, watch the short video below: