Investment crowdfunding platform StartEngine launched a Reg A+ self-crowdfunding offer for security tokens some time ago. Unfortunately, the offering has not yet been qualified by the Securities and Exchange Commission.
Last week, StartEngine opened up a “limited time” $10 million security token offering (STO) using the Reg D 506c securities exemption – an offering only open to accredited investors.
According to an email circulated by StartEngine, the Reg D STO will only remain open until the Reg A+ STO is qualified
For investors participating in the Reg D offer, tokens may be purchased for $7.50 each or a 25% discount to price expected in the Reg A+ STO. A minimum investment for the accredited offering has been set at $10,000.
Under Reg D, issued securities must be locked up for one year. Under Reg A+, securities can become immediately tradable – a characteristic of the securities exemption that has made it of interest to the STO/ICO realm.
StartEngine is not alone in having to wait on the Feds to qualify their offering documents. In fact, this publication is not aware of a single Reg A+ security token offering that has ever qualified. The SEC has taken a go-slow approach to issuing securities on the blockchain. While there have been numerous Reg A+ filings for STOs everyone remains in a holding pattern.
StartEngine wants to become a full stack security offering platform that includes both more traditional and, eventually, securities on the blockchain. The platform is also working on a secondary trading platform and has filed to become both a broker-dealer and alternative trading system (ATS).
Interested investors may express their interest in participating in the Reg A+ offering now while Reg D investors may invest today.
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