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Reg A+ and the IPO Valley of Death

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http://www.TheSecuritiesAttorneys.com Reg A+ and the IPO Valley of Death
This is written for the CEO of a fast growing company. Many of these companies are negative cash flow. Companies always need cash to grow on.
However, when a you file a full IPO with the SEC you are limited on who you can accept money from. You can only accept money from people you already know and qualified institutional buyers. Your angels are probably fully invested and the institutions may not care. You have to wait months to get through the SEC to get the IPO proceeds but you have to pay all the expenses now. This period where you need more money but are limited in getting money I call the “IPO Valley of Death”
Reg A+ offers some relief here. First, you can test the waters to see if the deal will work. Second, can do a Regulation S (offshore) offering while you have filed with the SEC. Third, you may also be able to do a Reg D, 506c offering (accredited investors only). These will help you get through the Valley of Death
For a free consultation (not a sales pitch) on the structure and marketability of your offering, contact me, John E. Lux. I will give you the benefit of my experience in investment banking and IPO market making along with advice on securities law. The more you look at your deal, the more you can easily see that proper formulation of your investment proposition is key to your success. Want to know more? – email me at John.Lux@ Securities-Law.info (240) 200-4529
John E. Lux was in the top 5% of authors on Slideshare in 2014 and has been quoted by Bloomberg as an expert on reverse mergers
Disclaimer This is not legal or investment advice of any kind Some restrictions apply here, this is only a summary Seek competent advice from qualified attorneys and investment bankers Your situation may vary
www.TheSecuritiesAttorneys.com

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Reg A+ and the IPO Valley of Death

  1. 1. www.TheSecuritiesAttorneys.com Reg A+ and the IPO Valley of Death
  2. 2. Disclaimer  This is not legal or investment advice of any kind  Some restrictions apply here, this is only a summary  Seek competent advice from qualified attorneys and investment bankers  Your situation may vary
  3. 3. www.TheSecuritiesAttorneys.com This is written for the CEO of a fast growing company
  4. 4. www.TheSecuritiesAttorneys.com Many of these companies are negative cash flow
  5. 5. www.TheSecuritiesAttorneys.com Companies always need cash to grow on
  6. 6. www.TheSecuritiesAttorneys.com However, when a you file a full IPO with the SEC you are limited on who you can accept money from
  7. 7. You can only accept money from people you already know and qualified institutional buyers
  8. 8. Your angels are probably fully invested and the institutions may not care
  9. 9. You have to wait months to get through the SEC to get the IPO proceeds but you have to pay all the expenses now
  10. 10. This period where you need more money but are limited in getting money I call the “IPO Valley of Death”
  11. 11. Reg A+ offers some relief here
  12. 12. First, you can test the waters to see if the deal will work
  13. 13. Second, you can do a Regulation S (offshore) offering while you have filed with the SEC
  14. 14. Third, you may also be able to do a Reg D, 506c offering (accredited investors only)
  15. 15. These will help you get through the Valley of Death
  16. 16. For a free consultation (not a sales pitch) on the structure and marketability of your offering, contact me, John E. Lux
  17. 17. I will give you the benefit of my experience in investment banking and IPO market making along with advice on securities law
  18. 18. The more you look at your deal, the more you can easily see that proper formulation of your investment proposition is key to your success
  19. 19. www.TheSecuritiesAttorneys.com  Want to know more? – email me at John.Lux@ Securities- Law.info  (240) 200-4529
  20. 20. John E. Lux was in the top 5% of authors on Slideshare in 2014 and has been quoted by Bloomberg as an expert on reverse mergers

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