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April 2012. That’s when the Jumpstart our Business Startups (JOBS) Act was signed into law by Pres. Obama. The Act directed the SEC to make changes to Regulation A, as my faithful blogees should be well aware. In fairness, the Act did not give the SEC any time limit to effect those changes. And it did take three years, but here we are now, finally. On March 25 the SEC officially approved their new rules, to be effective 60 days after their publication in the Federal Register. That happened yesterday, so we now know these changes will be effective June 19, 2015.
I really do believe these Regulation A changes could revolutionize the smallcap IPO. Anyone considering a reverse merger or self-filing should add a possible Reg A IPO to their options. And even a potential IPO to the Nasdaq, if you think it’s possible that in the end Nasdaq may not be quite ready for the company, could benefit from Reg A so that choosing to downlist retains the benefits of Reg A, including state blue sky preemption.
The OTCQB has confirmed they intend to allow Reg A companies to quote their stock there even if they are in the “light” reporting system of Reg A filing only twice a year. This is extremely important in making these offerings attractive, since the stock will not have to trade on the Pink Sheets. OK more to come as we get closer to effectiveness!
Read additional articles at the David Feldman Blog.
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