Regulation A+ offerings (Form 1-A) are executed through the submission of a meticulously prepared Form 1-A offering statement to the U.S. Securities and Exchange Commission (SEC). This regulatory framework caters specifically to U.S. or Canada-based enterprises seeking to facilitate modest-scale securities offerings.
A noteworthy advantage of a Regulation A+ offering lies in its provision for exemption from blue sky laws, specifically applicable to Tier 2 offerings. The Form 1-A, a prescribed SEC document, serves as a comprehensive repository of essential information concerning the business and the securities slated for a public offering.
Following submission, the SEC undertakes a rigorous review process, which may require subsequent amendments to ensure strict adherence to disclosure requirements. Upon successful qualification of the Regulation A+ offering (Form 1-A), the company gains authorization to proceed with its securities offering in accordance with regulatory stipulations.
The Two Tiers of Regulation A+
Regulation A+ under the Securities and Exchange Commission (SEC) consists of two tiers, each with its own set of requirements and limits for offerings:
Tier 1 Regulation A+
This tier allows companies to offer securities up to $20 million in a 12-month period. Companies opting for Tier 1 are subject to both federal and state securities laws. The offering company must file an offering statement with the SEC and is subject to ongoing reporting obligations, although these are less stringent compared to the requirements for publicly traded companies.
Tier 2 Regulation A+
This tier allows companies to offer securities up to $75 million in a 12-month period. Companies opting for Tier 2 are subject to federal securities laws but are exempt from most state securities laws. However, they still need to comply with certain state-specific requirements. Tier 2 offerings require a more comprehensive offering circular, ongoing reporting obligations, and additional investor protections, such as audited financial statements.
Both tiers of Regulation A+ are designed to provide easier access to capital for smaller companies and startups while allowing them to offer securities to a broader range of investors.
Why Choose V Financial Group?
With decades of expertise, V Financial Group has demonstrated proficiency in filing registration statements for businesses and corporations that have successfully transitioned to the public sphere. Our guidance is strategic, advising clients on the optimal Regulation A+ Tier and outlining the path for achieving their business objectives. V Financial Group excels in articulating complex financial circumstances.
