NYSE Reg A+ Offering Alternative Initial Public Offering

MKG Enterprises Corp is intending to Go Public With a Regulation A+ (Reg A+) is an alternative to a traditional IPO

MKG Enterprises Corp, Self Directed IRA Provider Public company January 8, 2019 at 4:20 am
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Pledged of $50,000,000 goal
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Authorized stocks issuance 125,000,000

MKG Enterprises Corp is intending to Go Public With a Regulation A+ (Reg A+) is an alternative to a traditional IPO by offering Banks, Financial Advisors, Institutions. Accredited Businesses, Accredited Investors to:

•Participate in unique deals

•Reg A+Offering raise up to 50 million per year

•Participate in unique deals

•PUBCO Public Company Vehicles

•Reverse mergers shells

•Diversify portfolio

•Invest directly in private companies

•Above average returns

•Uncorrelated to the stock market

Benefits as a Public Company

Private companies, generally those with $100 million to several hundred million in revenue, are usually attracted to the prospect of going public. The company’s securities become traded on an exchange, and thus enjoy greater liquidity. The original investors gain the ability of liquidating their holdings, providing for convenient exit alternatives to having the company buy back their shares. The company has greater access to capital markets, as management now has the option of issuing additional stock through secondary offerings. If stockholders possess warrants – giving them the right to purchase additional stock at a pre-determined price – the exercise of these options provides additional capital infusion into the company.

Public companies often trade at higher multiples than do private companies; significantly increased liquidity means that both the general public and institutional investors (and large operational companies) have access to the company’s stock, which can drive up prices. Management also has more strategic options to pursue growth, including mergers and acquisitions.

As stewards of the acquiring company, they can use company stock as the currency with which to acquire target companies. Finally, because public shares are more liquid, management can use stock incentive plans in order to attract and retain employees. (To learn more, read “For Companies, Staying Private a Matter of Choice.”)

Source cited: Investopedia

Updates

Benefits as a Public Company

Private companies, generally those with $100 million to several hundred million in revenue, are usually attracted to the prospect of going public. The company's securities become traded on an exchange, and thus enjoy greater liquidity. The original investors gain the ability of liquidating their holdings, providing for convenient exit alternatives to having the company buy back their shares. The company has greater access to capital markets, as management now has the option of issuing additional stock through secondary offerings. If stockholders possess warrants – giving them the right to purchase additional stock at a pre-determined price – the exercise of these options provides additional capital infusion into the company.

Public companies often trade at higher multiples than do private companies; significantly increased liquidity means that both the general public and institutional investors (and large operational companies) have access to the company's stock, which can drive up prices. Management also has more strategic options to pursue growth, including mergers and acquisitions.

As stewards of the acquiring company, they can use company stock as the currency with which to acquire target companies. Finally, because public shares are more liquid, management can use stock incentive plans in order to attract and retain employees. (To learn more, read "For Companies, Staying Private a Matter of Choice.")

Project FAQ

Regulation A+ (Reg A+) is an alternative to a traditional IPO, which makes it easier for smaller, early stage companies to access capital.

Looking to encourage small-business growth, in 2012 Congress passed the Jumpstart Our Business (JOBS) Act, a law intended to support small- business growth and employment by lowering regulatory hurdles for companies trying to go public and allowing firms to have more private shareholders.

In 2015, Title IV of the JOBS Act went into effect, allowing companies to raise money and offer shares to the general public and not just accredited investors.

Through Reg A+, a U.S. or Canadian company is afforded the opportunity to:
  • Raise up to $50 million in a 12-month period using a “public solicitation” of its shares and have the offering be exempt from SEC and state securities law registration.
  • Confidentially submit its offering memorandum to the SEC and enjoy the opportunity to “test the waters” before pursuing a mini-IPO.
  • Enjoy a streamlined, expedited review process where the company is required to make its offering memorandum public just 21 days before SEC qualification and the beginning of its roadshow.
  • Combine public funding (through Reg A+) with private funds from venture capitalists to create a larger round of fundraising.

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In the United States, to be considered an accredited investor, one must have a net worth of at least $1,000,000, excluding the value of one's primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year. The term "accredited investor" is defined in Rule 501 of Regulation D of the U.S. Securities and Exchange Commission (SEC) Dismiss