OTC Markets Group Applauds Expansion of Regulation A+ for SEC Reporting Companies
OTC Markets Group Inc. issued a press release yesterday applauding the May 24, 2018 enactment of the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155), which includes key legislation expanding Regulation A+ to SEC reporting companies.
Regulation A+ allows small companies to raise up to $50 million online, transparently and directly from the public without the extensive cost burden of a full SEC public offering. However, the SEC initially did not allow SEC reporting companies to raise capital through Regulation A+.
According to the press release, Section 508 of the bill incorporates the Improving Access to Capital Act, which was based in large part upon OTC Markets Group’s 2016 SEC Petition for Rulemaking. The Improving Access to Capital Act, which amends Regulation A+ to allow SEC reporting companies to use this innovative capital raising tool, was originally passed by the House of Representatives in September 2017 in a bipartisan, 404-3 vote.
“We are pleased to see the culmination of our advocacy to extend the benefits of Regulation A+ eligibility to SEC reporting companies,” said Cromwell Coulson, Chief Executive Officer and President of OTC Markets Group. “This key change will be instrumental in leveraging technology to fuel small company capital formation and increase the number of public companies that can efficiently access our capital markets.”
OTC Markets Group has been a strong proponent of the JOBS Act since it was enacted in 2012 and continues to support initiatives that promote small company capital formation, entrepreneurship and small business growth.
“Allowing fully SEC reporting companies to utilize Regulation A+ enhances capital formation opportunities for these job-creating companies,” said Dan Zinn, General Counsel for OTC Market Group. “We thank the members of the House and Senate who voted to pass S.2155, and specifically appreciate the work of Congresswoman Kyrsten Sinema (D-AZ) and Congressman Trey Hollingsworth (R-IN), who were the lead sponsors of the Improving Access to Capital Act in the House. The efforts of Representatives Sinema and Hollingsworth, along with cosponsors Rep. Roger Williams (R-TX), Rep. French Hill (R-AR), Rep. Luke Messer (R-IN), and Rep. Brad Sherman (D-CA), led directly to this important initiative becoming law.”
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