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www.TheSecuritiesAttorneys.com
Regulation A –
Costs and Time
www.TheSecuritiesAttorneys.com
Although many
commentators
overlook this, two
of the most
important factors in
any offering...
How fast can you
get your money
and how much do
you have to go
out of pocket up
front to get your
money
Old Reg A offerings
took as much as
nine months after
filing, although we
know those that
took only three
months
We do not believe
most offerings can
be completed in
less than three
months no matter
how careful you are
with your filing
For Tier 2, you need
two full years of
audits – the SEC
reports that audits
for IPOs
comparable to Reg
A filings spent
1.6...
In my experience,
the audit is the
last thing done
before filing
You must consult
with an
experienced auditor
for your company's
situation
We are familiar
with experienced
small company
PCAOB auditors
The SEC estimates
about 200 hours
of legal time at
$400 per hour,
cheaper rates are
available
Fees for electronic
filing on EDGAR
vary widely but
with electronic
EDGAR filing
you save on your
printing bill
An underwriter on
a $25 million deal
can demand a
large due
diligence fee to
sign a letter of
intent
The underwriter
gets a
commission on
stock sold plus
you pay all
expenses
You will also need to
pay a market maker
about $10,000 to
file a Form 15c211
and apply for DTC
eligibility
Fees for a transfer
agent to transfer
stock for your
shareholders vary
widely but are not
high
OTCMarkets wants
$4,500 per year
to be in their
system
Even a Tier 2 deal
will have to pay
some state filing
fees
When planning
your IPO, budget
out these
expenses in
advance, not all
have to be paid
immediately
An underwriter
may help you
raise money pre-
IPO to help with
expenses
www.TheSecuritiesAttorneys.com

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
me...
www.TheSecuritiesAttorneys.com
This is part of a series on Regulation
A, so subscribe here for more and
to learn more, go ...
Disclaimer

This is not legal or
investment advice of any
kind

Seek competent advice
from qualified attorneys
and inves...
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Regulation A - Costs and Time

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http://www.TheSecuritiesAttorneys.com Reg A – Costs and Time
Although many commentators overlook this, two of the most important factors in any offering are the costs and time involved. How fast can you get your money and how much do you have to go out of pocket up front to get your money.

Old Reg A offerings took as much as nine months after filing, although we know those that took only three months. We do not believe most offerings can be completed in less than three months no matter how careful you are with your filing.

For Tier 2, you need two full years of audits – the SEC reports that audits for IPOs comparable to Reg A filings spent 1.65% on audits. In my experience, the audit is the last thing done before filing. You must consult with an experienced auditor for your company's situation. We are familiar with experienced small company PCAOB auditors.

The SEC estimates about 200 hours of legal time at $400 per hour, cheaper rates are available.

Fees for electronic filing on EDGAR vary widely but with electronic EDGAR filing you save on your printing bill.

An underwriter on a $25 million deal can demand a large due diligence fee to sign a letter of intent. The underwriter gets a commission on stock sold plus you pay all expenses.

You will also need to pay a market maker about $10,000 to file a Form 15c211 and apply for DTC eligibility. Fees for a transfer agent to transfer stock for your shareholders vary widely but are not high. OTCMarkets wants $4,500 per year to be in their system. Even a Tier 2 deal will have to pay some state filing fees

When planning your IPO, budget out these expenses in advance, not all have to be paid immediately. An underwriter may help you raise money pre-IPO to help with expenses

www.TheSecuritiesAttorneys.com 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
This is part of a series on Regulation A, so subscribe here for more and to learn more, go to www. TheSecuritiesAttorneys.com and get a free copy of our book “How to Go Public”
Disclaimer This is not legal or investment advice of any kind Seek competent advice from qualified attorneys and investment bankers Your situation may vary The more you know about finance and business, the more you can profit

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Regulation A - Costs and Time

  1. 1. www.TheSecuritiesAttorneys.com Regulation A – Costs and Time
  2. 2. www.TheSecuritiesAttorneys.com Although many commentators overlook this, two of the most important factors in any offering are the costs and time involved
  3. 3. How fast can you get your money and how much do you have to go out of pocket up front to get your money
  4. 4. Old Reg A offerings took as much as nine months after filing, although we know those that took only three months
  5. 5. We do not believe most offerings can be completed in less than three months no matter how careful you are with your filing
  6. 6. For Tier 2, you need two full years of audits – the SEC reports that audits for IPOs comparable to Reg A filings spent 1.65% on audits
  7. 7. In my experience, the audit is the last thing done before filing
  8. 8. You must consult with an experienced auditor for your company's situation
  9. 9. We are familiar with experienced small company PCAOB auditors
  10. 10. The SEC estimates about 200 hours of legal time at $400 per hour, cheaper rates are available
  11. 11. Fees for electronic filing on EDGAR vary widely but with electronic EDGAR filing you save on your printing bill
  12. 12. An underwriter on a $25 million deal can demand a large due diligence fee to sign a letter of intent
  13. 13. The underwriter gets a commission on stock sold plus you pay all expenses
  14. 14. You will also need to pay a market maker about $10,000 to file a Form 15c211 and apply for DTC eligibility
  15. 15. Fees for a transfer agent to transfer stock for your shareholders vary widely but are not high
  16. 16. OTCMarkets wants $4,500 per year to be in their system
  17. 17. Even a Tier 2 deal will have to pay some state filing fees
  18. 18. When planning your IPO, budget out these expenses in advance, not all have to be paid immediately
  19. 19. An underwriter may help you raise money pre- IPO to help with expenses
  20. 20. www.TheSecuritiesAttorneys.com  Want to know more? – email me at John.Lux@ Securities- Law.info  (240) 200-4529
  21. 21. 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
  22. 22. www.TheSecuritiesAttorneys.com This is part of a series on Regulation A, so subscribe here for more and to learn more, go to www. TheSecuritiesAttorneys.com and get a free copy of our book “How to Go Public”
  23. 23. Disclaimer  This is not legal or investment advice of any kind  Seek competent advice from qualified attorneys and investment bankers  Your situation may vary  The more you know about finance and business, the more you can profit

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