As we leave 2020 in the rear view mirror we look ahead to 2021 with hopes that we can see a return to normalcy within our business environment.
The combination of record financial stimulus, COVID vaccine dissemination, and a re-opening of state level economies should breathe some life back into the US economy. While we may see some lingering impacts through mid 2021 our expectation is that the second half of the fiscal year 2021 should start resembling a normal economy again for most industries.
Business executives should be planning ahead for the process of raising funding for expansion or for business opportunities. Preparing a Regulation D based offering can take 30-60 days depending on the complexity of the company’s operations and the efficiency of the client in providing needed information. While Regulation D based offerings can be executed fairly quickly and without an SEC qualification process – they do have limitations the primary one being that a 506c based offering can only be sold to accredited investors.
Regulation A+ is a fantastic vehicle for raising funding for many companies. A company that wants to execute an offering to more closely mimics the promotion benefits of a true public offering should strongly consider Regulation A+ Tier 2 as an option. The key with Reg A+ is “plan ahead”. The offering preparation process and SEC qualification can typically take 5 months from start to finish so issuers investigating using Reg A+ should factor in a longer lead time to prepare such an offering for securities sales.
Questions about executing a Regulation D or Regulation A+ offering? Call us today at (720) 586-8616.
Thursday January 14, 2021
Category: Capital Formation and Regulation D
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