Reg A+ Exemption

Today, the SEC released proposed rules to carry out the rulemaking mandate of Title IV of the JOBS Act.  The proposed rules preserve and modernize the current framework of current Regulation A.  The proposed rules would establish two tiers.  The first tier would preserve the current offering threshold in Regulation A, which permits an issuer to offer and sell up to $5 million in any 12-month period, including no more than $1.5 million in securities sold by selling stockholders.  Tier 1 offerings would be subject to state securities review.  The second tier would create an exemption for offerings of up to $50 million in any 12-month period, including no more than $15 million in securities sold by selling stockholders.