Introduction
Significant changes to Regulation A, generally referred to as
Regulation A+, went into effect on June 19, 2015.
Old Regulation A
Regulation A is a previously existing exemption from the
registration requirements of the Securities Act of 1933 (Securities
Act) for nonpublic companies seeking to raise smaller amounts of
capital. Even before the new rules went into effect, Regulation A
already had several useful features. Regulation A gave smaller
companies access to public markets without registration. There were
no limitations on who could purchase the securities, and the
securities sold were freely tradable by non-affiliates. General
solicitations were allowed. Issuers could also "test the
waters" and gauge investor interest before launching the
offering (subject to certain state law requirements). Yet despite
these features, Regulation A had been used relatively infrequently
for several years. According to a recent GAO Report, there was just
one
