Great find, Ty! The Reg A offering has been mentio
Post# of 11107
Posted On: 07/19/2014 8:55:23 AM
Re: tynicholas01 #3301
Great find, Ty! The Reg A offering has been mentioned in the Q&A forum, but not publicly disseminated via the news wires. It's possible that the company is waiting until the Reg A offering has been approved by the SEC and the states that the offering will be extended to before releasing a PR to announce it, and chose not to jump the gun with this particular PR.
This link about the workflow surrounding a Reg A offering...
http://www.rjrconsultinggroup.com/regulation-a.php
...is a great read. Here's a summary of what it shares:
- the company's financial statements must be "reviewed"; having audited statements is optional. This may explain the recent retention of the new CPA firm.
- a "Regulation A Offering Circular" must be filed with the SEC as well as the appropriate state agencies where the offering will take place. This form may be available in EDGAR once filed; the company will most likely also publish it on their web site. Once the filing is complete, the company must wait for approval from those agencies. If comments are received back from the agencies, the company must file an amendment to address the comments.
- the actual offering process runs much more smoothly if a FINRA approved broker-dealer is used. If the company were to attempt the offering on their own, they might run into further burdens imposed by some states.
- if all required paperwork to prepare for the offering is readily available, it can take 4-5 weeks to pull it all together prior to making the filing.
- the shares sold in the offering are freely tradable (i.e., no restriction), and are set at a fixed price. They are common stock shares set aside for the purpose of the offering.
This link about the workflow surrounding a Reg A offering...
http://www.rjrconsultinggroup.com/regulation-a.php
...is a great read. Here's a summary of what it shares:
- the company's financial statements must be "reviewed"; having audited statements is optional. This may explain the recent retention of the new CPA firm.
- a "Regulation A Offering Circular" must be filed with the SEC as well as the appropriate state agencies where the offering will take place. This form may be available in EDGAR once filed; the company will most likely also publish it on their web site. Once the filing is complete, the company must wait for approval from those agencies. If comments are received back from the agencies, the company must file an amendment to address the comments.
- the actual offering process runs much more smoothly if a FINRA approved broker-dealer is used. If the company were to attempt the offering on their own, they might run into further burdens imposed by some states.
- if all required paperwork to prepare for the offering is readily available, it can take 4-5 weeks to pull it all together prior to making the filing.
- the shares sold in the offering are freely tradable (i.e., no restriction), and are set at a fixed price. They are common stock shares set aside for the purpose of the offering.
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