Tag Archives: growth capital

Current Reg A Offering Rules

The post, Smaller Company Reg A Offering Rules Get Update, triggered questions about the current rules.

Fortunately, the SEC provided a readable summary (click here) which is a segment of the full SEC page (click here) on financing small businesses.

Smaller Company Reg A Offering Rules Get Update

LanceImageLance Kimmel, a well-regarded attorney and head of SEC Law Firm, provides us with this helpful summary of key developments that should make Reg A offerings more useful again.

Following the mandate of the Jumpstart Our Business Start-Up (JOBS) Act, on December 18, 2013 the Securities and Exchange Commission proposed rules to amend largely forgotten and little-used Regulation A.

Having received far less attention than either of the other two major equity raising initiatives under the JOBS Act, general solicitation of accredited investors and equity crowdfunding, the revisions to Regulation A may well be the most far-reaching of the JOBS Act reforms. Informally known as “Regulation A+”.

Click here to read more on Capital Market Alerts.

SEC Proposes Eased Crowdfunding Rules

The SEC has proposed new crowdfunding rules which would dramatically expand the potential pool of investors.

Click here to go to read more at Monarch Bay’s website.

By Dennis McCarthy
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SEC’s Forum on Small Business Capital Formation

SECLogoThe SEC’s annual forum on small business capital formation, which has become an important forum for ideas and discussion, will be held on November 21st.

Thanks to Morrison & Foerster LLP  for the alert.

Click on the link below or copy and paste the link into your browser.

http://www.jdsupra.com/legalnews/sec-forum-on-small-business-capital-form-99846/

By Dennis McCarthy
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Monarch Bay’s New JOBS Act Posts

Monarch Bay Securities (mbsecurities.com) has initiated a new series of posts on the latest developments on JOBS Act funding.

Click the link to go to the first post, “Hold the Celebration!” and sign up for all the latest posts.

By Dennis McCarthy
Google

Practical Guide to New Deal Marketing

While I’ve seen many articles alerting us that new deals can be more widely marketed, including my post (click this link), this is one of the first articles that I’ve seen that describes the practical elements of how to implement a marketing program under this new regime.

Carlton Fields, a law firm headquartered in Florida, produced a useful summary for us.  Please click on the link to take you to the article at JDSupra Law News:

http://www.jdsupra.com/legalnews/how-to-use-electronic-media-to-access-ac-77767/

By Dennis McCarthy

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Life Science IPOs Surge

Life Science IPOs in May 2013, hit a level not seen for almost a decade.

This is a good sign for essentially all public equity especially public life science companies considering raising equity.

Click here to go to the post on my Medical Business Alerts website.

By Dennis McCarthy

Google

Financing Window for Middle Market Private Companies

By Dennis McCarthy – (213) 222-8260 – dennis@mbsecurities.com –

Today, middle market private companies have an unusual opportunity to raise equity capital.  If your middle market company would benefit from more equity capital, now may be the time to approach the capital markets.

Historically, we’d found that there was a practical cutoff at $5 million of EBITDA.  Private companies with less than $5 million of EBITDA generated little interest from private equity investors.

Now, while this window is open, we’re finding that middle market private companies with less than $5 million of EBITDA are getting interest from private equity investors.

In addition, we’re finding that these private equity investors may be willing to consider minority stakes in private companies.

Historically, getting a private equity group to invest in a minority position was rare.

And, to be fair, the strongest interest among private equity groups continues to be in majority investments, but we’re seeing more interest in minority stakes.

This is an attractive financing window which doesn’t come along often.

If your middle market private company would benefit from equity capital, to grow faster, pay off some debt or cash out some current shareholders, please contact me to discuss raising capital.   

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