RAISE CAPITAL AND KEEP CONTROL WITH REGULATION A+

 Smart Funding Summit Phoenix Arizona Discussion Panel

On February 21, 2018, the first ever Smart Funding Summit, convened in Scottsdale, Arizona, on the topic of Regulation A+ capital raises.

Attendees heard from the most experienced dealmakers and professionals in the industry, including Rep. David Schweikert, as well as local Arizona companies and their executives who have endeavored with Reg A+ public offerings. As a quick refresher, Reg A+ capital raises are often referred to as "Mini-IPOs" ($20-$50M) raised through non-accredited investors which can be done solely or in parallel with an accredited raise (Reg D- 506 C) and then listed (if and when ready) to a national exchange (e.g., OTC, NYSE, NASDAQ). Reg A+ Raises have gained momentum as a result of the JOBS ACT passed in April of 2012.

 

Since 2012 a lot has happened and the speakers and panelists detailed the activity to date.


Tom Polletti, partner at Manatt, Phelps & Phillips, LLP, an industry leading law firm presented on The State of the Market – How We Got Here and Where Are We Going.

Takeaways:

  • Over 130 Reg A+ public offerings have been filed with the SEC since 2015.
  • There are two tiers for Regulation A issuers – Tier 1 allows an issuer to offer and sell up to $20 million in a 12-month period and Tier 2 allows an issuer to offer and sell up to $50 million in a 12-month period. However, Tier 2 offerings are exempt from blue sky requirements.
  • Perception has changed dramatically since 2012, 2015 and again in 2018. The result is that we are still in the infancy of this industry for both companies issuing an offering and non-accredited investors seeking to support and buy equity in these same companies.

Scott Purcell, CEO of Fund America, the industry leading technology provider for fintech services supporting Regulation A+ offerings, presented on Reg A+ Raises – A Definitive Company Profile.

Takeaways:

  • Companies of all sizes – from middle market down to early stage startups have found success raising capital with Reg A+ public offerings.
  • The ability to market and advertise the public offering creates opportunities to capture new investors and spur long-term loyalty from non-accredited investors.
  • The components of a success Reg A+ public offering.

Chris Loeffler, CEO and Co-Founder of Caliber Wealth discusses his company’s journey toward Regulation A+ after nearly 10 years of experience raising from accredited investors for real estate and development projects.


Ronn Ford, CEO of Ronn Motor Group discusses his company’s journey toward Regulation A+ and their trials related to attempts at bringing their company’s supercar to market.


Ryan Smeets, VP of BIG YAM, The Parsons Agency presented on Identifying and Relating to Non-Accredited Investors.

Takeaways:

  • The difference between accredited and non-accredited investors.
  • Considerations for effectively marketing a Reg A+ offering including the investor journey.
  • How non-accredited investors will need to be marketed and the transparency demanded by these offerings.

Reg A+ Raises – Professional Services Round Table

Regulation A+ experts discuss their professional backgrounds and experience stewarding current and prospective issuers through the public offering process for non-accredited investors. Perspectives provided by all the required people including marketing, investor relations, legal, accounting and broker dealers.


Arizona Reg A+ Stories – Elio Motors

Tim Andrews, Sr VP of Elio Motors discussed the trail blazing efforts of Elio Motors, the first ever successful Regulation A+ offering.


Arizona Reg A+ Company Panel Discussion

Jeanne Campanelli from Crowdcheck interviewed Ronn Ford, Chris Loeffler and Tim Andrews on their collective experience and the benefits to their business of using Regulation A+ to raise funds.

John Shaw