THE GROWING FUTURE FOR REGULATION A+

Regulation A+ is proving itself to be an unmitigated success story. In fact, for those companies which are not only reporting with the SEC and therefore ineligible to use regulation A+, it is predicted to be the overwhelming choice for going public transactions and even for IPOs.

There is one overwhelming reason for this sea change. It is that regulation 8+ exams the offering from compliance with state securities laws. For over 80 years, United States is had a two-track system of securities regulation. A mess on offering was approved for listing on the securities exchange, the states had the right to review every securities offering if those securities were offered to residents in that state.

Paradoxically, or perhaps appropriately, it is those states with the largest pool of potential investors which have the strictest standards for state regulation. Most of these states make it impossible to raise money from the public for companies which have not yet obtained profitability. Regulation A+, with its preemption of state law, eliminates this problem altogether.

Provided the company is not already reporting with the SEC, and therefore precluded from using regulation A+, there is no logical reason for most emerging growth companies to go any IPO  route other than Regulation A+.