How Do Small Issuers React to Innovation in Securities Offering Methods?

In 2015 the U.S. Securities and Exchange Commission adopted amendments that significantly expanded Regulation A, a previously little used provision that allows companies to conduct small public securities offerings without having to comply with all the requirements applicable to traditional registered public offerings (referred to as “Regulation A public offerings” below). The amendments implemented JOBS Act Title IV and included raising the annual offering limit from $5 million to $50 million as well as other changes. This regulatory shock had the potential to expand the financing options available to small growth companies. Previously, the main alternatives to a securities offering … Read more