How and Why Level Brands Switched From A S-1 IPO to a Reg A+


How and Why Level Brands Switched From A S-1 IPO to a Reg A+

Level Brands recently became the second issuer to complete a Reg A+ IPO and list on the NYSE American Exchange. NYSE: LEVB raised $12 million by selling 2 million shares at $6 each at a pre-money valuation of $35 million.

LEVB wasn’t always on a path to completing a Reg A+ IPO. In fact, one week before completing and S-1 IPO the LEVB team decided to switch to a Reg A+ IPO.

In a Forbes post by Rod Turner, Martin Sumichrast, CEO of Level Brands Inc. is quoted as saying; “We were probably one week away from completing our S-1 IPO when we decided to change direction and make a Reg A+ IPO instead. We felt that with Kathy Ireland’s huge affinity group as our focus we would do well to market our offering broadly and provide democratic access to our IPO – unlike the very limited availability that is usual for an S-1. Kathy has always been a disrupter, and she liked this approach.

Sumichrast said this was the first time a company made a last minute switch from S-1 to Reg A+. The last minute switch took 60 days total including 3 weeks to re-write the filings.

About half of the capital raised came from existing investors and friends of the company. The remainder was raised with the help of Joseph Gunnar and TriPoint/BANQ, two well known microcap investment banks.


Learn more HERE.



Leave a Reply