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Law360 Quotes Spencer Feldman on the Expansion of Reg. A+ Benefits to Public Companies

June 5, 2018

Law360 (subscription required) recently quoted Olshan Corporate Partner Spencer Feldman in an article about capital formation reforms stemming from amendments to the Dodd-Frank Act. The article focused on so-called Regulation A+ which will now enable already publicly reporting companies to use this less onerous registration process to raise capital. Whereas Regulation A+ previously only benefited private companies not reporting to the SEC, the regulation can be used by publicly reporting companies, including those companies whose shares are quoted on a marketplace operated by the OTC Markets Group. Regulation. A+ now allows any company to raise a maximum of $50 million in a 12-month period and a Tier 2 Regulation A+ offering is exempt from state securities law registration. Mr. Feldman noted that interest has been piqued among some publicly reporting companies whose shares now trade in an OTC market, but would like to uplist to a national securities exchange utilizing the easier Regulation A+. The drawback, Mr. Feldman said, is “that not many investment banks are interested in doing Reg A+ deals because of their small offering size.” “There has to be a buy-in from salespeople and investors,” he continued.   

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