Friday, June 19, 2015, is an historic day for both small business and federal securities regulation. For the first time in over a century private early stage and more mature companies alike will be able to offer their securities to the general public without having to endure the oversize costs and burdens of a traditional IPO – which can run into millions of dollars. With bi-partisan backing from Congress under Title IV of the JOBS Act of 2012 and detailed SEC rules, a private company can now go public through SEC Regulation A+, allowing a company to raise up to $50 million in a Mini IPO and operate as a public company with reduced ongoing SEC disclosure. Many companies are expected to take advantage of this new avenue of capital formation.
And for those companies who are uncertain as to whether there will be sufficient investor interest to justify the time and expense of filing a Regulation A+ offering with the SEC, companies will now be able to “test the waters,” publicly solicit non-binding indications of interest, before making any filings with the SEC.
For those companies that are considering testing the waters, or are ready to commence the new Regulation A+ qualification process, please feel free to contact me for more information at sguzik at guziklaw.com
It is a great honor and privilege to sit down in an interview with renowned business mentor Jay Abraham on June 19 to discuss some of the practical implications for companies and investors alike. For those of you who are interested, following is a Press Release announcing the Podcast, with details on how to access this free event:
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The Ultimate Entrepreneur with Jay Abraham Commemorates SEC’s new
“Regulation A Mini-IPOs,” Available on the Play.it Podcast Network
June 19, 2015 Could Be One Of The Most Historic Days In The History Of Entrepreneurship.
That’s When “Regulation A Mini-IPOs” Go Into Effect.
Learn Why This Could Help The American Dream Come True
For Small Businesses And Investors Alike.
New York City, June 17, 2015
On June 19th, “The Ultimate Entrepreneur with Jay Abraham” podcast, available on Play.it®, will launch a special edition of “The Ultimate Entrepreneur with Jay Abraham” commemorating the Securites and Exchange Commission’s new “Regulation A Mini-Initial Public Offerings” going into effect.
Many believe this new securities law (commonly referred to by industry insiders as “Reg A+”) permitting small businesses to raise up to $50 million a year from the general public will help make the American Dream come true for entrepreneurs and small investors alike.
The special program (“Crowd-Powered Mini-IPOs”) features legendary entrepreneurial mentor, business growth expert and best-selling author, Jay Abraham. His special guest co-host is Peter M. Einstein, Co-founder / Chief Visionary Officer of The CrowdFunding Network, which has created a special “Crowd-Powered Mini-IPO” Resource Page with articles, webinars, and other materials at www.LaunchIPO.com
for anyone interested in learning more about this new game-changing legislation.
” I think this could, arguably, be one of the most significantly impactful, positive developments for entrepreneurs seeking funding and exit strategies ever mounted.”
– Jay Abraham
As Einstein points out on the resource page: “The modern entrepreneurial version of the American Dream is starting your own business and then ‘going public’ through an IPO. Or, from the small investor’s perspective, it’s buying shares in The Next Big Thing at the Initial Public Offering price and watching their value grow exponentially. Thanks to the SEC’s recent ruling on Regulation A, both those versions of the American Dream are now becoming a reality.”
This special program will also feature leading Reg A+ expert and advocate Samuel Guzik (noted securities attorney & Chairman of The Crowdfunding Professional Association). It will address a myriad of details entrepreneurs and investors need to know before taking advantage of this newly-enacted law. Although a highly regulated form of capital formation and investing, Reg A+ mini-IPOs are considered a form of crowdfunding, since the offerings can be actively promoted via many of the same methods as popular Kickstarter campaigns such as videos, social media, blogs, advertising, etc. (unlike traditional IPOs which are far more restricted in their ability to communicate with potential investors).
The “Crowd-Powered Mini-IPOs” podcast will be available for downloads on June 19 at