{"id":289,"date":"2013-10-21T15:01:53","date_gmt":"2013-10-21T20:01:53","guid":{"rendered":"http:\/\/www.accreditedinvestorleads.com\/?p=289"},"modified":"2019-05-01T14:58:27","modified_gmt":"2019-05-01T18:58:27","slug":"regulation-a-and-the-jobs-act","status":"publish","type":"post","link":"https:\/\/www.accreditedinvestorleads.com\/regulation-a-and-the-jobs-act\/","title":{"rendered":"New Regulation A and the JOBS Act"},"content":{"rendered":"
The JOBS Act is primarily known for opening the door to investment crowdfunding.\u00a0 It also had a provision to eliminate the ban on general solicitation, which the SEC is implementing under Rule 506c of Regulation D.\u00a0 Both of these changes will make it easier for the general public to become aware of investment opportunities and participate in private offerings.\u00a0 While crowdfunding will be available to everyone, Rule 506c is open to Accredited Investors only.\u00a0 What many do not realize is that the JOBS Act also included a provision relating to Regulation A of the Securities and Exchange Act of 1933.\u00a0 According to the JOBS Act the SEC is required to expand Regulation A to permit private offerings of up to $50 million without registration.<\/p>\n
What is Regulation A?<\/strong><\/p>\n Regulation A is not as well known as Regulation D but it does provide an exemption from registration with the SEC.\u00a0 Currently Reg A is set up as follows:<\/p>\n This is actually a great option for companies.\u00a0 The “test the waters” provision allows companies to publish advertisements, including television and radio, along with showing information to potential investors prior to filing anything.\u00a0 This way if there is not enough interest a company can either revise their offering and try again, or simply forgo the process all together.\u00a0 This could be a viable option for companies that want to advertise but are still concerned about changing SEC regulation surrounding Rule 506c.\u00a0 It is important to remember, however, that the company cannot accept investment until a staff member of the SEC has reviewed and approved the documents.\u00a0 Testing the waters lets you gage interest and line up investors, you just can finish the process until the SEC is done.<\/p>\n When debating whether you should issue a private offering, go public, leverage crowdfunding, or do a hybrid with Regulation A – it is important to evaluate your overall strategies and goals.\u00a0 There are several options available to you.\u00a0 We provide information here and on our blog, http:\/\/www.privateplacementblogs.com\/<\/a>.\u00a0 Keep reading and stay up to date.\u00a0 We will bring you more legislative updates as they come.<\/p>\n The JOBS Act is primarily known for opening the door to investment crowdfunding.\u00a0 It also had a provision to eliminate the ban on general solicitation, which the SEC is implementing under Rule 506c of Regulation D.\u00a0 Both of these changes will make it easier for the general public to become aware of investment opportunities and<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[63],"tags":[],"yoast_head":"\n\n
For more information please visit our mother site at<\/b> Salesleads.tv<\/b><\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"