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Reporting Company can now raise Capital with Reg A+



Expansion of Regulation A+ for SEC Reporting Companies
We are pleased to share an exciting development in our ongoing campaign to enhance the capital raising opportunities for Small-Cap companies. Last week, the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) was enacted into law and included key legislation expanding Regulation A+ to SEC reporting companies.

Regulation A+ allows small companies to raise up to $50 million online, transparently and directly from the public without the extensive cost burden of a full SEC public offering. However, the SEC initially did not allow SEC reporting companies to raise capital through Regulation A+.

The passage of The Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155) marks a pivotal milestone for our smaller companies and issuers. Section 508 of the bill incorporates the Improving Access to Capital Act, based in large part upon OTC Markets Group’s 2016 SEC Petition for Rulemaking. The Improving Access to Capital Act, which amends Regulation A+ to allow SEC reporting companies to use this innovative capital raising tool, was originally passed by the House of Representatives in September 2017 in a bipartisan, 404-3 vote.

OTC Markets Group believes this legislation will be instrumental to improving the capital raising process and increasing the number of public companies that can efficiently access our capital markets. We thank the members of the House and Senate who voted to pass S.2155, recognizing the work of Congresswoman Kyrsten Sinema (D-AZ) and Congressman Trey Hollingsworth (R-IN), lead sponsors of the Improving Access to Capital Act in the House, and collective efforts of Representatives Sinema and Hollingsworth, and cosponsors Rep. Roger Williams (R-TX), Rep. French Hill (R-AR), Rep. Luke Messer (R-IN), and Rep. Brad Sherman (D-CA), whose contributions led to this important initiative becoming law.

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