Small Cap Series
July 01, 2014
The SEC has recently disseminated a proposed rule, which would create a new category of exemption from securities regulation, which has been dubbed “Reg. A+”(although this is not its official name). Reg. A+, as proposed, is an extension of current Regulation A, which is an exemption from the registration requirements mandated by the Securities Act of 1933 (the “Securities Act”), applicable to small public offerings of securities that do not exceed $5 million in any 12-month period. The proposed rule would add a new section to the Securities Act by allowing for an exemption for small offerings of up to $50 million of securities in one year. This would create two classes of offerings: “Tier 1”—$5 million and under (Reg. A offering); and “Tier 2”—$5 million to $50 million (Reg. A+ offering).