SEC Adopts Final Rules To Implement "Regulation A+"

As part of its mandate under the JOBS Act to facilitate capital raises by smaller companies and emerging businesses and its continuing effort to broaden the number of investment options for investors, the Securities and Exchange Commission ("SEC"), on March 25, 2015, adopted final rules to amend Regulation A under the Securities Act of 1933 (the "Act"), which have become commonly known as "Regulation A+." These new rules become effective June 19, 2015, 60 days after their publication in the Federal Register.

The SEC adopted the new rules to expand the existing exemption from the registration requirements of the Act under Regulation A, the so-called small offering exemption, which had limited appeal and use, in large part due to its maximum offering amount of only up to $5 million in any 12-month period. Among other changes, the new rules amend Regulation A to increase the maximum offering amount to $50 million in any 12-month period and preempt the application of