Due to somewhat recent amendments to Regulation A and Regulation D and the creation of Regulation Crowdfunding, private companies can now raise tens of millions of dollars without conducting a traditional initial public offering. However, the de-restriction and opening of the private capital markets place…
In recent years, the financial landscape for small and micro-cap companies has shifted dramatically. The traditional Initial Public Offering (“IPO”) route has presented increasingly challenging hurdles, prompting a need for innovative solutions. One such innovator, Digital Offering LLC (“Digital Offering”), an SEC-registered broker-dealer and a…
Section 12(g) of the Securities Exchange Act of 1934 (the “Exchange Act”) (15 U.S.C § 78l(g)) mandates that a company register with the Securities and Exchange Commission (the “SEC”) a class of securities if: the company has gross assets of more than $10 million; and…
Small and Micro-cap companies with common stock listings are turning to innovative financial strategies to protect and enhance their market position while increasing capital on hand. One such strategy being pioneered by Digital Offering, LLC, an SEC-registered broker-dealer and a leader in crowd-financed offerings[1], involves…
This article delves into the financial reporting requirements associated with Regulation Crowdfunding and Regulation A offerings under the Securities Act. Unless stated otherwise or as the context requires, this article’s references to financial statements mean the balance sheet and statements of comprehensive income, cashflows, and…
Foreign companies seeking access to the U.S. capital markets often face a significant hurdle: effectively describing their business, operations, and governance matters to an English-speaking audience. The complexities of translating from one language to another give rise to linguistic, cultural, and contextual nuances that must…
As the owner of a company conducting offerings of the same securities under Tier 2 of Regulation A (“Reg A”) and Regulation Crowdfunding (“Reg CF”), you encounter the complex task of fulfilling ongoing reporting obligations. To comply with the regulations, your company must file various…
Securities offerings under Regulation Crowdfunding (17 CFR § 227.100 – 504), or Crowdfunding Offerings, have become an increasingly popular way for start-ups to raise capital. The popularity of Crowdfunding offerings can be attributed to the low cost of complying with the regulation’s disclosure requirements relative…
