What is a Regulation A offering?


Section 3(b) of the Securities Act authorizes the SEC to exempt from registration small securities offerings. By this authority, it created Regulation A, an exemption for public offerings not exceeding $5 million in any 12-month period. If you choose to rely on this exemption, your company must file an offering statement, consisting of a notification, offering circular, and exhibits, with the SEC for review.

Regulation A offerings share many characteristics with registered offerings. For example, you must provide purchasers with an offering circular that is similar in content to a prospectus. Like registered offerings, the securities can be offered publicly and are not “restricted,” meaning they are freely tradeable in the secondary market after the offering. The principal advantages of Regulation A offerings, as opposed to full registration, are:

   * The financial statements are simpler and don’t need to be audited;
   * There are no Exchange Act reporting obligations after the offering unless the company has more than $10 million in total assets and more than 500 shareholders;
   * Companies may choose among three formats to prepare the offering circular, one of which is a simplified question-and-answer document; and
   * You may “test the waters” to determine if there is adequate interest in your securities before going through the expense of filing with the SEC.

All types of companies which do not report under the Exchange Act may use Regulation A, except “blank check” companies, those with an unspecified business, and investment companies registered or required to be registered under the Investment Company Act of 1940. In most cases, shareholders may use Regulation A to resell up to $1.5 million of securities.


DFS WORLDWIDE LLC., can arrange money for when your business needs it the most. We Specialize in helping businesses with their cash flow, by providing solutions for the ever present need for money. We do this in several ways including factoring, purchase order funding, equipment leasing, asset based lending and many other funding alternatives. We value professionalism; being fair; recognizing that what’s best for the customer is what’s best for us; we don’t compromise our principles to do a deal. We take pride in our work and our relationships.


Insiders of publically trading companies contact us for your no cost consultation.


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