With the recent news of SEC filing criminal fraud charges against the CEO & CFO of 8 private companies that raised significant capital using the Regulation A+ Method for Direct Public Offering, it is perfect timing to review best practices. Karen reminds her audience that in any Direct Public Offering (DPO) is bound by securities regulations to be truthful and transparent in your documents and public facing statements, the same as any private company raising capital under traditional Regulation D securities offerings. Although legally you can use social media, direct marketing, and digital marketing to advertise your offering to the public to attract investors, issuers do not get a pass to 'advertise' benefits that are speculative.
Karen includes her perspective on the pros & cons of mounting a REG A+ campaign for different stages and industries early stage companies operate in. Regulation A+ is ideal for companies with strong consumer appeal or B2B (small business customers), a large and happy customer base tap as a foundation, and a healthy balance sheet and squeaky clean legal review; these make a successful Reg A+ offering much less expensive to market and to close 'retail' investors.

Transcript of Recording: https://bit.ly/3X9sjzW

Regulation A+ dramatically improves the funding and liquidity prospects for companies that want a more practical and cost-effective way to raise capital or to IPO on the NASDAQ, and to retain control of their company. It has completely changed the capital raising landscape; Reg A+ also offers other attractive listing options after the offering completes.

Reg A+ is also called a Public Offering because, during and after the offering, the Regulation A+ shares are considered liquid by the SEC. There is no lockup period unless you impose a lockup for your company. It is not a requirement, but Reg A+ can be used to take a company public and list on the NASDAQ or the NYSE. A Reg A+ IPO is much more cost-effective than a traditional S-1 IPO and takes far less time to process by the SEC.

Other listing options include the OTCQB, OTCQX, and one of the many new ATS (Alternative Trading Systems). The emerging ATS option is a very positive development for companies that want to provide liquidity for their investors and founders to liquidate some of their shares to coincide with the Reg A+ issue.

Regulation A+ offers companies to raise $75 Million per year from the public - both from accredited and non-accredited investors worldwide.

Articles referenced in the video/podcast:
KORECONX article:
https://www.koreconx.com/sec-charges-eight-in-scheme-to-fraudulently-promote-securities-offerings/
SEC news
https://www.sec.gov/litigation/litreleases/2022/lr25541.htm
Basic Primer on REG A+ provided by Manhattan Street Capital
https://www.manhattanstreetcapital.com/blog/kosb95-17756/what-regulation-a-how-do-a-reg-a-offering

UPDATE: Karen Rands has joined forces with Erik Nelson of Coral Capital Advisors to expand the breadth of experience and skilled services for companies seeking to use REG A+ and other Direct Public Offerings to raise capital to grow their business. To learn more and schedule an appointment with Coral Capital Advisors, go here: https://bit.ly/coralcap

Karen Rands is a top podcaster and speaker focused on creating wealth through building and investing in successful entrepreneur endeavors. She wrote the best selling primer for Angel Investors: Inside Secrets to Angel Investing and is working on her next book for CEO & Founders that are 'stuck' and don't know where to get the money to scale their businesses.

To learn more about the programs and services that Karen and her team offer to entrepreneurs and investors, visit http://karenrands.co

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