Using Reg A+ as a Vehicle to Raise Debt

A Prominent Attorney Sees Regulation A+ as Perfect to Raise Debt Capital
– Crowdfund Insider

Crowdfund Insider interviewed Manatt's Brian Korn, a partner in the firm's Capital Markets practice, for an article on Regulation A+ as a vehicle to raise debt. A reincarnation of Regulation A, Regulation A+ created two different funding tiers that allows non-accredited investors access to a new securities exemption and investment opportunities.

When asked why he sees Regulation A+ as a good option to raise debt capital, Korn said:

"Regulation A+ is the easiest path to accessing the retail investor that we have seen. As an alternative to fully-registered platforms, it offers a much lighter touch in terms of audit, financials and disclosure burden. It remains to be seen if the SEC will give Reg A+ issuers an easier review process. My sense is that they won't, but it's early days. If a platform's affinity model or other business plans lend themselves to accessing the retail investor, Reg A+ is the only way to do so short of the long form registration."

Read the article here



pursuant to New York DR 2-101(f)

© 2024 Manatt, Phelps & Phillips, LLP.

All rights reserved