The updated exemption will enable smaller companies to offer and sell up to $50 million of securities in a 12-month period, subject to eligibility, disclosure and reporting requirements.
“These new rules provide an effective, workable path to raising capital that also provides strong investor protections,” said SEC Chair Mary Jo White. “It is important for the Commission to continue to look for ways that our rules can facilitate capital-raising by smaller companies.”
Under Regulation A+, there are two tiers of offerings that companies may make that include:
· Tier 1 – for offerings of securities of up to $20 million in a 12-month period with no more than $6 million in offers by selling security-holders that are affiliates of the issuer; and,
· Tier 2 – for offerings of securities of up to $50 million in a 12-month period with no more than $15 million in offers by selling security-holders that are affiliates of the issuer.
Both tiers are subject to certain basic securities requirements while tier 2 offerings are also subject to additional disclosure and ongoing reporting requirements.
For the press release: http://www.sec.gov/news/pressrelease/2015-49.html#.VSBgD_nF_E5