Regulation A+, Modernizing Regulation A
Title IV of the Jumpstart Our Business Startups Act (“JOBS Act”), popularly known as
Regulation A+, authorized the SEC to modernize and expand the existing Regulation A for offerings of up to $50 million. On March 25, 2015, the SEC adopted final rules to implement the mandate, which will become effective 60 days after publication in the Federal Register.[1]
The final rules establish two tiers of offerings:
- Tier 1: Annual offering limit of $20 million, including no more than $6 million on behalf of selling security holders that are affiliates of the issuer; and
- Tier 2: Annual offering limit of $50 million, including no more than $15 million on behalf of selling security holders that are affiliates of the issuer.
