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Regulation A+ for Secondary Offerings and Uplisting of already Public Companies

Secondary offerings for public companies

Manhattan Street Capital can now help SEC reporting companies to raise up to $75 million in growth capital through Regulation A+

Check with our experts on whether your company is well suited to raise money through Regulation A+

Background of Regulation A+ for Public Companies

The Securities and Exchange Commission (SEC) made a significant announcement, opening the path for public companies reporting to the SEC under Section 13 or 15(d) of the Securities Exchange Act to utilize the Regulation A+ exemption to raise capital. This increased scope for Regulation A+ will lead to more established, already-public companies making secondary offerings via Reg A+, which will help strengthen the ranks of US Small Cap businesses on the NYSE, the NASDAQ and on the OTC Markets. We expect the resulting increased awareness of Reg A+ from this expansion will further accelerate its use and bring new legitimacy to Reg A+ fundraising.

 

This marks a huge advancement for the Regulation A+ funding sector, which many people believe can accelerate the growth of midsize companies better than any other mechanism, given the fact that it allows cost-effective access to capital via online offerings to investors of all wealth levels, and provides a viable route to growth capital for entrepreneurs whose businesses do not fit Venture Capital or Private Equity, and those who want to stay at the helm of their business. SEC Chairman Jay Clayton offered this statement: “Regulation A provides an exemption from registration under the Securities Act for offerings of securities up to $75 million in a 12-month period. The amended rules will provide reporting companies additional flexibility when raising capital.”
 

For those who are unaware, Reg A+ was first set in motion in July 2015 and has been successfully used to raise capital for relatively early-stage companies and has also been used as the IPO method to the NASDAQ and the NYSE by more than ten companies since June of 2017.

For companies with consumer appeal
Regulation A+ works best for mid-stage companies and mature startups that have great consumer appeal.
Raise $4M- $75M +
With Regulation A+ companies can raise up to $75 million per year.
Anyone can invest
Investors don't need to be wealthy. Regulation A+ makes it possible for investors of any wealth level, including your customers to invest in your company.
Reg A+ investors are liquid
After investment, the SEC allows Reg A+ investors to sell their shares.

How it works

Attract Investors
Market your offering worldwide to investors of any wealth level, opening the door to an enormous pool of investors for your company.
Raise Capital
Raise up to $75 million in growth capital faster, more efficiently and affordably than with an S-1 or S-3 raise.
Uplist to a Major Exchange
OTC listed companies may utilize Regulation A+ as a highly efficient path to uplist to the NASDAQ or NYSE.
 
Why Reg A+ is an attractive method for secondary offerings and uplisting of public companies:
  • Raise capital with higher Efficiency and at lower cost – A Regulation A+ capital raise can be performed faster, more efficiently, and significantly more cost-effectively than a conventional S-1 or S-3 capital raise.
  • Publicly Market your Capital Raise – You may advertise and market a Regulation A+ offering online allowing you to generate demand. Say goodbye to the boring tombstone ads. You can run “Test the Waters” ads before the offering to assess the level of interest for your offering before you decide to file it with the SEC.
  • Attract Investors of any Wealth Level – A Regulation A+ offering can be marketed worldwide to investors of any wealth level, unlike a Reg D offering which is limited to accredited investors only. This opens the door to an enormous pool of potential investors.
  • Simpler State Regulation - Market your offering to a large customer list spread out over many states, inviting them to participate in your offering.
  • Selling Shareholders - Regulation A+ allows affiliates of a company to sell up to 30% of the capital raised.
  • Uplisting – OTC listed companies may find a Regulation A+ offering to be a highly efficient path to raise significant capital while preparing the company to uplist to the NASDAQ or the NYSE.

 

Learn more about Reg A+

Watch Rod Turner's webinar on; Why Reg A+ is an attractive method for secondary offerings and uplisting of public companies

 

What we offer

We assist companies through the whole capital raising process to achieve a successful offering. Our website technology integrates the necessary services so companies can make their offering work efficiently on Manhattan Street Capital.

Our services can be divided into two main categories; Hosting and Project Management.

Hosting

  • List your offering on our platform
  • Use of our easy Invest Now system.
  • Automated AML checks
  • Investor accreditation verification when needed
  • Wide variety of payment options
  • Worldwide investor base
  • Private investing mode
  • Integrated ad traffic tracking to optimize the marketing campaign
  • Automated emails to investors
  • Online subscription agreement signing
  • Archival for compliance purposes

Project Management

  • We help assess if Reg A+ is a good fit for your company.
  • Project management through the whole journey
  • Introductions to and assist in management of experienced service providers such as brokers, marketing agencies, attorneys, auditors, etc.
  • We work with broker-dealers that charge a cost-effective 1% fee on Reg A+ offerings.
  • Assist with the preparation of the legal documents
  • We train your staff on what is allowed in an offering and how to do the marketing effectively
  • Help you ensure compliance with the regulations.

Check with our experts on whether your company is well suited to raise money through Regulation A+

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