December 1, 2015

Corp Fin: Ted Yu to Return as OMA Chief

I’ve updated our “Corp Fin Org Chart” to reflect the coming return of Ted Yu, who will replace Michele Anderson as Chief of Corp Fin’s Office of Mergers & Acquisitions in early January. Michele recently was promoted to Associate Director and oversees that office among others. And Ted had left Corp Fin about 11 months ago to join Skadden…

How Many Regulation A+ Offerings Has the SEC Qualified?

In addition to this blog about the largest A+ crowdfunding offering qualified by the SEC (Elio Motors through StartEngine), here’s a blog by Steve Quinlivan:

Registered statements are “declared effective” by the SEC; Regulation A+ offering documents are “qualified” by the SEC, and when it happens an EDGAR document called “QUALIF” is generated. Per my review, the following Regulation A+ transactions that were filed after the effective date of the Regulation A+ rules have been qualified by the SEC.

– Med-X, Inc.: A Tier 2 offering for $15 million.

– ralliBox, Inc.: A Tier 2 offering for $3 million.

– Groundfloor Finance Inc.: This issuer has had two Tier 1 offerings qualified, the most recent for $1.5 million.

– Costal Financial Corp.: A merger proposal categorized as Tier 1 valued at $13 million.

– Strategic Global Investments Inc.: A Tier 1 offering for $2.8 million.

Progress for Venture Exchanges

Here’s an excerpt from this MoFo blog:

We have seen various initiatives intended to promote capital formation for smaller reporting companies and emerging growth companies. Among these initiatives, the development of venture exchanges in the United States appears to be gaining momentum. The exchanges would, in comparison to their larger national exchange counterparts (Nasdaq Stock Exchange, New York Stock Exchange, etc.), allow smaller or earlier-stage companies to list their shares and provide for some liquidity.

Support for the formation of venture exchanges has come from representatives from NYSE MKT and Nasdaq OMX, who in May testified before Congress as to the need and proposed structure of a venture exchange. Additionally, a push for legislation promoting capital formation, supported by testimony from a group of industry professionals, has led to the introduction of the Main Street Growth Act, which sets rules and listing standards for a new venture exchange. In February, SEC Chair Mary Jo White expressed at the SEC Speaks conference that the SEC has been encouraging rule changing that would promote the establishment of venture exchanges, as the SEC has approved of these in the past.

Also see this MoFo blog with notes from the recent ABA Fall Conference during which Corp Fin Staffers discussed capital formation developments – and this MoFo blog about an unlawful crowdfunding case that the SEC brought against an unregistered broker (also see this blog)…

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Broc Romanek