Regulation A+ Allows Access to Public Capital

Chris Loeffler says Reg A+ opens a much wider door for investors to participate.

SCOTTSDALE, AZ—It was not that long ago that companies could go public with an IPO of less than $10 million. Regulation A+ of Title IV of The JOBS Act allows private companies to raise up to $50 million from the public. “These new rules provide an effective, workable plan to raising capital that also provides strong investor protections,” said Securities and Exchange Commission chair Mary Joe White . “It is important for the commission to look for ways that our rules can facilitate capital-raising by smaller companies.” Reg A+ enables all classes of investors to participate in the IPO process, which will begin to level the playing field and may jumpstart what used to be a robust environment for US capital raising. And, by inviting its early adopters to participate in a Reg A + offering, a company can reward its customers and turn those customers into brand ambassadors. “Today’s IPO markets are clearly broken, severely inhibiting capital formation for emerging growth companies. In the past, many ground-breaking companies [be]came public with small IPOs. It’s amazing to note, in light of today’s incredibly bifurcated market, that Adobe went public in 1986 with a $7 million transaction. Clearly, we need to get back to the point when fast-growing, deserving private companies want to and are able to go public again. The SEC, through its recent mandate under Reg. A+, is now enabling all classes of suitable investors to participate in the IPO process. This is important for all stakeholders, and, in the long term, will benefit employment and our economy,” says Jon Merriman, CEO of Merriman Holdings Inc . With regard to the expanded IPO process, Merriman Holdings will be advising wealth development company, Caliber Companies , on the process toward a Reg A+ offering. The anticipated offering will allow Caliber to raise up to $15 million and the transaction is expected to be offered through a syndicate of investment banks. Chris Loeffler , CEO and co-founder of Caliber, tells GlobeSt.com: “Reg A+ opens a much wider door for investors to participate in the rapid growth and success Caliber has experienced.  Access to well-structured alternative investments in real estate private equity provides wealth-building opportunities that are generally rare in today’s environment. Caliber’s vertical integration supports these opportunities by controlling all elements of the investment cycle–from acquisition to disposition.  We are proud to be among a select few companies using Reg A+ to pioneer a new path forward to grow great businesses.” Caliber has not registered or qualified for a Regulation A offering with the SEC. Prior to doing so, Caliber is testing the waters to solicit potential investor interest and is not accepting money or any binding commitments at this time. No sales of these securities will be made or subscriptions accepted until qualification of the offering statement by the SEC. Any indication of interest made by a prospective investor is non-binding. No offer of securities will be made without providing any prospective investor with a qualified offering statement. Loeffler adds: “Now more than ever, we are convinced that the right path for Caliber and the right path for great companies in America is Reg. A+. We believe that Reg. A+ was formed specifically for solid, high-growth companies like Caliber. We are pleased to be working with the entrepreneurs at Merriman on this groundbreaking transaction.”