OTC Markets Group has recently filed a petition for SEC as a step of their fight on behalf of smaller SEC reporting companies. OTC’s also provided a quick summary:
What do you think, will it be enough to convince SEC? Should we expect equity crowdfunding to become more available for smaller companies? I’ve seen projects suffering from being unauthorized to use whole set of features brought by Reg A - they’d be happy to have this petition approved.
- In March 2015, the SEC published the rules for implementing Title IV of the JOBS Act, known as Reg. A+, giving small companies the ability to use online offerings to raise up to $50 million from individual investors;
- As implemented these rules exclude all SEC Reporting Companies from accessing capital online under Reg. A+;
- The SEC missed an important opportunity to drive small company growth and limited the tangible benefits of Reg. A+ for investors;
- Online securities offerings under Reg. A+ provide significant investor protection including a permanent record, or audit trail, of disclosures made to potential investors;
- SEC Reporting Companies already meet the SEC’s high standards for disclosure;
- Transparent, public, online capital raising better serves smaller companies and their investors vs. the opaque, offline private offering processes of PIPES deals and equity lines of credit;
- Online securities offerings will expand access to a greater pool of better informed investors and lower the cost of capital raising.
What do you think, will it be enough to convince SEC? Should we expect equity crowdfunding to become more available for smaller companies? I’ve seen projects suffering from being unauthorized to use whole set of features brought by Reg A - they’d be happy to have this petition approved.
