Going public specialists at ReverseMergers.com provide filing and assistance with Reg A+ offerings.
ReverseMergers.com (reversemergers.com/), a provider of alternative and direct public offering services, announces expanded service offerings for crowd fundraising using Regulation A+. The company, which has been primarily focused on affordably taking companies to the public markets, sees huge opportunities within crowdfunding, particularly as Regulation A+ and eventually Title III crowdfunding play a pivotal role in capital formation in the coming years.
Without some of the stringent rules of a typical microcap stock offering, Regulation A+ crowdfunding allows companies and founders to raise up to $50,000,0000 in a single year from a Tier 2 Reg A+ deal. This capital enhancement is being called the mini-IPO and is expected to help in the financing for growth, mergers and acquisitions, accounts receivable financing, equipment and real estate acquisition as well.
The typical Regulation A offerings of yesteryear allowed companies to raise up to $5,000,000. The latest JOBS Act rules now increase the traditional Reg A offerings by a great deal, while allowing issuers to promote and sell stock to both accredited and non-accredited investors. In what some have deemed an opportunity for more swindling, others are calling the new rules “game changing” in the way companies can now gain greater and more efficient access to capital from the masses.
The Regulation A+ process requires legal and accounting assistance for filing the necessary Form 1-A with the SEC along with a standard three year audit. “We work with some of the best compliant attorney and accounting firms to ensure offerings are completed timely and in the best way possible,” says Durrant. “Our attorneys can help issuers navigate the sometime unseemly waters of private and public offerings.”
In addition, companies that are intent on performing a Regulation A+ offering can also “test the waters” by soliciting the assistance of their users or followers with a soft offer prior to the real Offering Circular takes place. That is, they can solicit potential investors with a soft ask and see if there truly is a strong market for the company’s stock prior to the actual offering takes place. In this way, potential issuers can save the money and time required to file the initial paperwork to get the ball rolling by gauging the temperature of their potential investors.
“Our team sees the huge opportunity that is Regulation A+ and we’re fully-poised to take advantage of the wave,” says Jake Durrant, Managing Director for ReverseMergers.com. “We’re already beginning to see opportunities arise for various Reg A+ deals, including Reg A+ in real estate, services and fast-growing technology.”
ReverseMergers.com is comprised of industry leaders with decades of experience in middle market M&A as well as “go public” transactions with everything from reverse mergers to direct shareholder offerings. The team helps to both capitalize and grow companies using debt, equity and public and private stock. The firm and its principals assist private business owners in gaining access to capital through the public markets.