Thursday, March 26, 2015

Regulation A+ Rules A Boon for Late Stage Emerging Growth Companies

On March 25, 2015, the Securities and Exchange Commission (SEC) adopted final rules for Regulation A+, promulgated under the Jumpstart Our Business Startups Act (JOBS Act). As a result, late stage Emerging Growth Companies (EGCs) should benefit from a modest reduction in transaction and reporting costs when compared to a full blown IPO.

What impact will this have on small capital formation?  Not much.  An EGC is any issuer with total annual gross revenues of less than $1 billion during its most recently completed fiscal year.  While EGCs at the high end of the revenue producing spectrum stand to benefit, the adoption of Regulation A+ will likely have no impact on small and medium size entities.

The SEC’s proposed rules say as much.  They estimate that very few new issuers will gain access to the public capital markets because of Regulation A+.  Most Regulation A+ offerings will be siphoned from other segments of the current public capital market.

Robert Zeglarski

Friday, March 13, 2015

Thank You Nashville Rotary Club For the Coolest Induction Gift!

Every city has its own vibe and culture, but none like Nashville, Tennessee. I recently moved to Nashville and joined the local Rotary Club, a "civic club for businesspersons committed to community service." I wanted to better integrate myself into the business community while giving back to the community at large.  Inductions are conducted during weekly meetings at, of all places, the Wildhorse Saloon.  If that was not Nashville enough, they gave me this awesome poster made by Hatch Show Print.  Thank you Nashville Rotary Club!

 Bob Zeglarski