In an updated investor bulletin, the SEC Office of Investor Education and Advocacy ("OIEA") described how Regulation A registration exemption provides investors opportunities to invest in small and early stage companies.
Securities Act Regulation A provides an exemption from registration which permits "companies to raise money from the public in securities offerings of up to $50 million." OCIE stated that "in comparison to registered offerings, smaller companies in earlier stages of development may be able to use this rule to more cost-effectively raise money."
Further, the OIEA explained how investors can stay informed about Regulation A investments and updated guidance on offering circulars and qualified offerings.
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