March 7, 2016 Budly

Evolution of a New Capital Landscape


March 25 of last year the Securities and Exchange Commission announced that it had adopted the final Regulation A+ rules, enabling private companies qualified by the SEC to offer and sell up to $20 million worth of securities under Tier 1 requirements, and up to $50 million under Tier 2 requirements, to both accredited and non-accredited investors.

Almost a year after this announcement, on Feb. 25, 2016, the SEC’s Advisory Committee on Small and Emerging Companies met to discuss the ongoing evolution of this new capital landscape.

Since then more than 60 offerings have been made, which 19 have qualified, as of Feb. 15, 2016 with $1.3 billion in total capital has being sought under Regulation A+, with $290 million currently qualified. The $290 million in qualified filings represent a diverse group of capital-seeking companies, from an automaker and dental device manufacturer to a high-tech aviation company and a multi-divisional cannabis company, among others.

With Regulation A+ allowing the general public to buy shares from qualified companies there is now an opportunity on the horizon for other entrants to continue blazing a trail that other capital-seeking cannabis companies should study.

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