Houses Passes Improving Access to Capital Act to Allow SEC Reporting Issuers To Use Reg A+
On Wednesday, the House of Representatives approved the ‘Improving Access to Capital Act’ (HR 2864). The legislation will expand the usage of Regulation A+, to SEC fully reporting companies.
Regulation A+ was created by the JOBS Act of 2012 and may be used by crowdfunding issuers to raise up to $50 million in a “mini-IPO” type offer. Initially, Reg A+ was only made available to private companies and ‘non-reporting’ (Pink) public companies.
OTC Markets has continued to push for an expansion of Reg A+ to include SEC reporting companies. On the OTC Markets’ blog earlier this year, Matt Fuchs Matt Fuchs (EVP of Market Data at OTC Markets Group) highlighted the expansion of Reg A+ as a way to “make the market more competitive and hopefully decrease the leverage toxic financing firms have with small/micro-cap issuers.”
Reacting to the news, Cromwell Coulson, Chief Executive Officer and President of OTC Markets Group said, “We are excited to see the House of Representatives pass HR 2864, Improving Access to Capital Act, and we commend Representatives Sinema and Hollingsworth for sponsoring this bipartisan legislation that will give all SEC reporting companies the ability to raise capital online under Regulation A+. This effort is vital to lowering the cost of capital formation and fostering economic growth for US companies.”
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