WEST PALM BEACH, Florida, April 25, 2016 /PRNewswire/ --
Regulation A+ investors are sailing on one large ship. There's a storm coming though, and the people on deck can't see it. However, the few of us perched high up in the crow's nest see the approaching hurricane very clearly.
When Regulation A+ (Reg A+) received a green light from the SEC in June of 2015, it was hailed as a new opportunity for small companies in need of investor capital. Reg A+ is a shortened registration process that allows companies to conduct public offerings of their stock to both accredited and non-accredited investors as long as certain criteria are satisfied. In addition to the benefit of pre-offering test-the-waters communications, informational and financial statement requirements have been scaled back from the traditional S-1 registration process. Post-offering SEC reporting requirements have been simplified as well.
Issuers are also permitted to use social media and the internet to market the offering.
The bold investors who fund these pioneering private companies, particularly less established companies, receive shares of stock which are often deemed "penny stocks" by the SEC. These shares are priced at less than $5.00 and generally trade on an alternative market such as the OTC Market.
The storm that is building strength started out as nothing more than a headwind. It has been increasingly difficult for investors to deposit penny stocks with broker-dealers for years. Our more cautious economic environment has intensified this resistance, and speculators who put hard-earned dollars into the growth and development of visionary industries may end up holding stock certificates that cannot be deposited with broker-dealers, cleared and ultimately traded, without experiencing strong opposition.
This complication escalated on October 9, 2014, when the SEC announced a settlement of charges against E*Trade Securities and E*Trade Capital Markets for selling billions of shares of unregistered and otherwise restricted penny stocks for their clients.
Read full story here - Huffington Post
Securities attorney Laura Anthony and her experienced legal team provide ongoing corporate counsel to small and mid-size OTC and exchange traded issuers as well as private companies going public on the over-the-counter market, such as the OTCQB and OTCQX or an exchange such as NASDAQ or NYSE MKT. Legal & Compliance, LLC is a comprehensive corporate, securities and business transactions law firm assisting clients in all aspects of commerce, including initial public offerings, reverse mergers, registered public offerings, exempt private offerings, all forms of complex corporate finance transactions, compliance with national exchanges such as the NASDAQ and NYSE MKT and the over-the-counter market trading platforms such as OTCQB and OTCQX, compliance with FINRA and DTC, strategic planning for unique management and ownership issues, and broad-scope legal services. Laura Anthony, Esq. is an approved OTCQX Advisor (DAD/PAL). Laura Anthony, Esq., is also the creator and author of SecuritiesLawBlog.com and the producer and host of LawCast.com, The Securities Law Network.
Laura Anthony, Esq.
Legal & Compliance, LLC
SOURCE Legal & Compliance, LLC