Regulation A Offerings
Regulation A offerings are small public offerings—limited to $5,000,000 during any twelve-month period. In addition, Regulation A offerings allow an unlimited number of investors, permit general solicitation of investors, and have no qualification standards for investors. The Form U-7, which was developed for use with SCOR offerings, may also be used for a Regulation A offering.
You are required to file a registration statement with the SEC that includes two years of unaudited financial statements. Regulation A offerings are reviewed by the SEC like any other public offerings, and must be cleared or declared effective by the SEC before they can be sold. The SEC review process could take three to six months from the date of filing, and therefore, increases the costs to the company and amount of time associated with starting to raise capital.
