Myomo, a medical robotics company whose products enable users to overcome upper extremity paralysis, has filed a Form 1-A with the SEC indicating its intent to raise money under Reg A+, a crowdfunding exemption that allows issuers to seek up to $50 million in capital. TriPoint Global Equities, along with its online division BANQ, will act as the lead managing selling agent and book runner for the offering. Myomo expects to list shares on the New York Stock Exchange (NYSE) under ticker symbol “MYO” following the funding round. If the issuance is successful, it will be the first Reg A+ offer to trade on the NYSE.
Mark Elonowitz, CEO of TriPoint, released a statement on the offer;
“I am quite excited to announce that TriPoint’s client, Myomo, has submitted its Form 1a with the SEC and plans to list on the NYSE. This is a historical moment for bringing back the Small Cap IPO and Myomo is expected to be the first crowd financed company to list on the NYSE MKT. We are using the new regulations from the JOBS act to provide capital to issuers using Title IV, known as Reg A+, but designing the offering and process to mimic standard IPO methodology. This hybrid approach will provide a combination of the crowd, institutional interest and traditional retail syndicate, all powered by our digital investment banking platform BANQ. We are proud to be working with Myomo and look forward to its expected offering in the 1st quarter of 2017.”
Myomo will use the proceeds from the offering to fund its sales and marketing expansion, product development, repayment of debt and for working capital and other general corporate purposes.
A Reg A+ offer is open to both accredited and non-accredited investors. The new securities exemption became actionable in 2015 and since that time companies have raised over $175 million in the “mini-IPO” type offer. Reg A+ is designed to allow early stage growth companies to raise capital in a streamlined and lower-cost process for the issuer. It may also provide investors the unique access to participate in an IPO for these potentially high growth companies.
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