Regulation D Resources is excited to announce the planned launch of a new service: “Direct” Regulation CF Crowdfunding Offering Preparation Services.
What is a “Direct” Reg CF and why is it different than a traditional Reg CF offering?
The original Reg CF rules required that all Reg CF offerings execute through an SEC approved Reg CF Platform. While there were many of these platforms that materialized, they tend to be very expensive to utilize (8-11% commissions and 2-3% equity along with CF preparation and Form C preparation and filing fees).
A “Direct” CF offering takes advantage of a rule change that allows approved broker dealer intermediaries to engage in administration of a Reg CF offering. This allows the CF Issuer to bypass the expensive Reg CF platforms and execute “direct” using a broker dealer managed website portal for executing the securities sales.
The benefit of a “Direct” Reg CF Offering using our services is execution fees and commissions that are 1/3 the cost of using a traditional Reg CF Platform while maintaining a fully SEC compliant sales process. With a Direct Reg CF – the associated broker dealer commissions of 3% and 1% warrants for equity (calculated only on funds raised) are a fraction of what traditional Reg CF platforms charge. Further, issuers will have their own dedicated CF website portal and are not sending their investor prospects to a traditional portal with hundreds of other investment opportunities.
Regulation D Resources Reg CF Services will include:
– Reg CF Offering structuring guidance
– SEC Form C Filing and Offering Circular Drafting
– SEC Form C EDGAR Conversion and SEC submission
– Investor Engagement Page website build
– Technology coordination with the FINRA Broker dealer and transfer agent compliance management and subscription processing system that will host the Reg CF offering and process subscriptions. Fees: Regulation D Resources Reg CF Offering Preparation fee will be a flat fee of $7,000 and the technology platform setup fee will be $3,500 (payable to third party transfer agent platform integrated with the broker dealer). Monthly execution fees for the technology platform are $550 a month during the term of the offering (paid to the transfer agent technology provider).
With the enhanced Reg CF cap of $5,000,000 and the ability to generally solicit the public and accommodate investment from accredited and non-accredited investors – the “Direct” Reg CF approach will be a perfect fit for many companies seeking to execute under Reg CF but wanting to avoid the high costs of a traditional CF platform offering.
Our Direct Reg CF Services are slated for retail launch in late August 2021. Interested in executing a “Direct” Reg CF offering? Call us today to discuss! (720) 586-8616.
Wednesday August 04, 2021
Category: Corporate News
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