Mina Mar Group

Regulation A, also known as Reg A+ provides companies with exemption from registration requirements and it applies to public offering of securities that do not exceed $20 million or $50 million in a one year period. Beside lowering regulatory hurdles and lowering costs Reg A+ has one more important benefit. Regulation A allows the issuer to conduct continuous offering. This means that issuer of securities is allowed to keep some stock for future sale without the need to set a share price at the time of qualification. After the offering is approved by the SEC, companies have the right the offer stock at various prices over a period of time with the new Reg A+. In a Reg A offering the offering statement is qualified by the SEC and the offering is made by the offering circular.  At the time of the sale pricing information is filed after sale as a supplement which does not require the SEC review. First you need to understand the difference between amending and supplementing ...

The Problem Solved by Continuous Offerings Period to the introduction of Reg A+, companies with existing stock trading are willing to sell with the old Reg A. To achieve this, the price of the price of the stock had to be relatively reasonably compared to the market price. But, the market price by small companies can be unpredictable or volatile. To enable the company changes the offering price, the company must file an amendment of its Reg A+ filing, and it takes weeks to get the approval by the SEC. During this period of waiting, changes in the market price automatically mean that pricing would be out of date. After the offering is approved by the SEC, companies have the right to offer stock at various prices over a period through the new Reg A+. At the time of sale, pricing information is filed after sale as a supplement which does not require the SEC review. Terminology First, there is a need to understand the difference between "supplementing" and "a...