Not a Lexis Advance subscriber? Try it out for free.
LexisNexis® CLE On-Demand features premium content from partners like American Law Institute Continuing Legal Education and Pozner & Dodd. Choose from a broad listing of topics suited for law firms, corporate legal departments, and government entities. Individual courses and subscriptions available.
As a follow up to his State of the Union address, Pres.
Obama yesterday issued a press release calling for a number of initiatives to
help small business. Among them, it said, "The President is calling to raise
the offering limit under Regulation A from $5 million to $50 million, coupled
with strong investor protections."
As we recall, Regulation A offers a simpler offering
circular to be distributed as a way to complete an initial public
offering. Let's hope the final bill includes meaningful state "blue sky" law
exemptions for Reg A offerings. Could this be one of the thing that happens
during the Presidential "silly season"? I sure hope so.
In addition, the President called for "crowdfunding" to
be easier to do (the SEC and Congress are both working on this), the creation
of a so-called IPO "on-ramp" (a blue-ribbon Treasury panel recommended easing
into financial disclosure requirements over a period of years and he supports
it), and expanding the Small Business Investment Company (SBIC) program.
Besides the Regulation A reform, I wish we could expand
the availability of short-form registration for public offerings to all public
reporting companies, not just those with $75 million in market value. That
would help a lot.
But some good stuff there. We'll be talking about crowd
funding and the on-ramp in future entries. That's where a lot of the wonkish
types are chattering these days.
For additional insights on reverse mergers,
SPACs, other alternatives to traditional initial public offerings, the small
and microcap markets and the economy, visit the Reverse Merger and
SPAC Blog by David N. Feldman, Esq., Partner of Richardson &
For more information about LexisNexis
products and solutions connect with us through our corporate site.