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How many investors am I allowed to have in my company with Regulation A+ ?

How many investors am I allowed to have in my company with Regulation A+ ?

How many investors am I allowed to have in my company with Regulation A+ ?

There is no actual limit that we are aware of, to the number of investors. We have been advised by experts* that when an issuing company (the company selling its shares) issues its shares in "Street Name", which means that the shares are held by one stock broker, and represented electronically in the investor's brokerage account, then the stockbroker becomes the single Shareholder of Record for the Reg A+ issued shares, and since Section 12(g) applies to the count of Shareholders of Record, the number limit will not normally exceed the trigger of 500 below.

It is important to note that companies that do not list on any stock exchange are able to put their stock into Street Name by using the services of firms like Compushare. This step requires that the company Qualify its stock for DWAC, which costs in the $12k to $18k range. 

An issuing company that does not take the step described above, and that exceeds Section 12(g)’s 500 holders threshold and had a public float of less than $75 million as of its most recently completed semiannual period (or for an issuer without  a public float, annual revenues of less than $50 million as of its most recently completed fiscal year, would be granted a two-year transition period before  being required to register its securities under Section 12(g).

Regulation A+ provides an exemption for securities issued in a Tier 2 offering from the registration requirements  of Section 12(g) of the Exchange Act as long as the issuer hires a registered transfer agent, remains subject to and current in its Tier 2 periodic reporting obligations, and had a public float of less than $75 million as of its most recently completed semiannual period (or for an issuer without  a public float, annual revenues of less than $50 million as of its most recently completed fiscal year).

It is important to note that companies that do not list on any stock exchange are able to put their stock into Street Name by using the services of firms like Compushare. This step requires that the company Qualify its stock for DWAC, which costs in the $12k to $18k range. 

* Please consult your attorneys.