• Latest JOBS Act Developments: Regulation A+
  • April 24, 2015 | Authors: Trent J. Andrews; Dennis J. Doucette; Paul B. Johnson
  • Law Firm: Procopio, Cory, Hargreaves & Savitch LLP - San Diego Office
  • On March 25, 2015 the Securities and Exchange Commission (“SEC”) adopted amendments to Regulation A. The final rules are colloquially known as “Regulation A+”, which permits companies to offer and sell up to $50M of securities over a 12-month period without federal securities registration. The new rules, which were mandated by the JOBS Act of 2012, were adopted to assist private companies with raising capital. The original Regulation A was seldom used due to the relatively low amount of capital that could be raised ($5M), the disclosure requirements, and the requirement to comply with state securities, or “blue sky” laws. The new Regulation A+ is an effort to provide a more viable opportunity for companies to raise capital, as discussed below.