On June 19, Regulation A+ will go into effect, replacing Regulation A under Section 3(b) of the Securities Act. Regulation A allowed issuers to raise up to $5 million in a 12-month period through the sale of securities to both accredited and unaccredited investors. To accept this type of investment, an issuer was required to complete a “mini-registration” with the SEC and comply with state requirements. The “mini-registration” was intended to be less onerous than a regular IPO.
With fewer restrictions and simpler filing requirements, the new rules have the potential to allow entrepreneurs to raise more money much more easily than under the previous regulations. Below we examine what these changes mean for your business and how you can take advantage of the new regulations.