Yesterday the House of Representatives approved the Improving Access to Capital Act (HR 2864), legislation that will expand the usage of Regulation A+, a securities exemption that has gained in popularity for smaller firms. The legislation was sponsored by Representative Kyrsten Sinema.
Reg A+ was created by the JOBS Act of 2012 and may be used by crowdfunding issuers to raise up to $50 million in a “mini-IPO” type offer. This House bill will allow for the utilization by reporting companies – not just new issuers thus broadening the number of companies eligible to raise money under the rules.
OTC Markets has been highly supportive of the legislation. Cromwell Coulson, Chief Executive Officer and President of OTC Markets Group, commented on the vote;
“We are excited to see the House of Representatives pass HR 2864, Improving Access to Capital Act. We commend Representatives Sinema and Hollingsworth for sponsoring this bipartisan legislation that will give all SEC reporting companies the ability to raise capital online under Regulation A+. This effort is vital to lowering the cost of capital formation and fostering economic growth for US companies.”
Dan Zinn, OTC Markets General Counsel, added;
“Expanding the scope of eligible issuers under Regulation A+ to include fully SEC reporting companies enhances the opportunity for capital formation for these job-creating companies. Seeing this bipartisan bill, sponsored by Representatives Sinema and Hollingsworth, pass in the House of Representatives is a significant step forward for US companies.”