Regulation A is a securities exemption. It's designed to assist smaller companies in accessing capital. Regulation A was updated in 2015 under the JOBS Act and divided into two tiers: Tier 1, for offerings of up to $20 million in a 12-month period, and Tier 2, for offerings up to $75 million in a 12-month period. Companies using Reg A can market their shares to the public, not just accredited investors, and the securities are freely tradable after the offering. The process requires a review and qualification by the SEC and, for Tier 2, audited financial statements.
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Alert - SEC Amends Rules to Promote Capital Raising (Reg A, Reg Crowdfunding, Rule 504)
Read about the SEC's amended rules to promote capital raising.
