Unlock Growth and Liquidity: Reggae Plus for Capital Raising

Table of Contents

1. Introduction
2. What is Reggae Plus?
3. Advantages of Reggae Plus
   • Increased capital raising ability
   • Retained control of the company
   • Liquidity for insiders and investors
   • Various kinds of public offerings
4. Listing options
   • Alternative trading systems
   • Listing in Canada and internationally
   • IPO via underwritten support
   • Direct listing
5. Reporting obligations
   • Tier one and tier two differences
   • Ongoing financial reporting requirements
   • Listing on major exchanges
6. Costs and schedule
   • Estimated costs of a Reggae Plus offering
   • Timelines and key considerations
7. Marketing a Reggae Plus offering
   • Importance of advertising and email marketing
   • Leveraging customer lists
   • Compliance with SEC regulations
   • Protecting novice investors
8. Nature of Reggae Plus investors
   • Main Street investors and accredited investors
   • Marketing challenges and impact of Apple's privacy moves

Reggae Plus: Revolutionizing Capital Raising for Companies

Reggae Plus, a Type of public offering, has emerged as a game-changer in the realm of capital raising for companies. With its increased credibility and flexibility, Reggae Plus allows companies to unlock greater access to funding while retaining control of their business. In this article, we will Delve into the intricacies of Reggae Plus, exploring its advantages, listing options, reporting obligations, costs, and marketing strategies.

What is Reggae Plus?

Reggae Plus, which has been in existence since 2015, is a legal instrument that enables companies to Raise capital through a public offering. Unlike traditional forms of capital raising, all investors in a Reggae Plus offering are considered liquid by the Securities and Exchange Commission (SEC). This means that investors can easily find potential buyers for their securities, provided there are no restrictions imposed by the issuing company. Reggae Plus is open to investors of all wealth levels worldwide, although the maximum investment limit varies Based on accreditation status.

Reggae Plus is specifically designed for U.S. companies and those headquartered in Canada. However, international companies can establish a U.S. entity and conduct an offering in the U.S. as long as they conduct significant business within the country. One of the key advantages of Reggae Plus is its online nature, allowing companies to market themselves and raise funds directly from investors through digital platforms.

Advantages of Reggae Plus

Reggae Plus offers several advantages for companies seeking to raise capital. Firstly, companies can raise up to $75 million per 12-month period, providing access to substantial funding for growth and expansion. Moreover, Reggae Plus allows companies to retain control of their business, unlike traditional capital raising methods such as private equity or venture capital funding.

Additionally, Reggae Plus offers liquidity to both insiders and long-standing investors. Insiders can sell up to 30% of the capital raised, providing an opportunity for founders and existing investors to capitalize on their investment. This liquidity also extends to new investors, as Reggae Plus is designed to be easily tradable.

Another significant AdVantage of Reggae Plus is the ability to conduct various kinds of public offerings. Companies can choose to list on major exchanges such as NASDAQ or NYSE, or opt for alternative trading systems (ATS). Listing on major exchanges may require additional audit requirements, while ATS listings provide liquidity without the risk of short-selling. Reggae Plus also allows already public companies to conduct secondary offerings, providing additional opportunities for fundraising.

Lastly, Reggae Plus offers the flexibility to change the valuation of the offering as the company progresses. This can result in less dilution for the company, as credible companies succeeding in raising money through Reggae Plus often carry a higher valuation compared to traditional funding sources.

Overall, Reggae Plus provides an innovative and accessible approach to capital raising, opening doors for companies to achieve their growth objectives while providing investment opportunities for a broader range of investors.

Listing Options

When it comes to listing options, Reggae Plus offers several avenues for companies to gain liquidity and access to the public markets. Companies can choose to list on alternative trading systems (ATS), which provide a simpler and less expensive method of listing compared to major exchanges. Although ATS listings may have lower liquidity, they offer the advantage of reduced regulatory burden, making them an attractive option for many companies.

Companies can also explore listing in Canada or internationally, subject to fulfilling certain requirements. Canadian and international listings allow companies to tap into different market dynamics and investor bases. By establishing a U.S. entity and conducting a material business within the country, even international companies can leverage the benefits of Reggae Plus.

Furthermore, companies have the option to conduct an IPO via underwritten support to major exchanges such as NASDAQ or NYSE. This avenue provides broader exposure and credibility for the company, albeit with additional audit requirements and potential costs. Alternatively, companies can opt for a direct listing, where they can bypass the involvement of underwriters or broker-dealers and list directly on major exchanges. This option presents cost savings and increased control for the company, albeit with marketing efforts being crucial in raising investor awareness.

Reporting Obligations

There are two tiers when it comes to the reporting obligations for Reggae Plus offerings: tier one and tier two. Tier one is less common and mainly used by smaller companies that qualify for a local offering within one or two states. The majority of Reggae Plus offerings fall under tier two, which allows companies to raise up to $75 million.

Under tier two, companies are required to produce a US GAAP audit once a year, along with six-month management financials in US GAAP format. These reporting obligations ensure transparency and accountability to investors. However, if a company chooses to list on major exchanges such as NASDAQ or NYSE, additional regulatory requirements, including quarterly PCAOB-level audits, may Apply.

The costs associated with reporting obligations can vary depending on the complexity of a company's financials. Companies with messy or disorganized financial records may face higher costs to prepare their financial statements for auditing. However, for most companies with straightforward financials, the ongoing reporting obligations of Reggae Plus are relatively manageable.

Costs and Schedule

The costs associated with a Reggae Plus offering can be broken down into two main components: the initial cost to become qualified by the SEC and the cost of marketing the offering. The initial cost to become qualified can range from around $150,000 for a straightforward offering to potentially higher amounts for companies with complex financials. It is essential to factor in the timeline for obtaining audited financials and completing the necessary filings with the SEC, which typically takes between four to six months.

Once qualified by the SEC, the cost of marketing the offering becomes the most significant expense. Marketing expenses can vary depending on the reach and effectiveness of the advertising campaign. Leveraging customer lists and targeting Main Street investors can be a cost-effective strategy, while advertising outreach and online marketing efforts may require a more substantial budget. Overall, the total cost of a Reggae Plus offering, including marketing expenses, can range from 10% to 14% of the total capital raised.

Marketing a Reggae Plus Offering

Marketing plays a critical role in the success of a Reggae Plus offering. Unlike traditional IPOs, where a quiet period is observed, Reggae Plus allows companies to actively market themselves to raise funds online. Advertising online through social media platforms and leveraging customer lists are common strategies to drive investor interest.

However, it is essential to comply with SEC regulations and protect novice investors. Companies are prohibited from using hype or making unrealistic claims about their offerings. Instead, the marketing focus should be on providing accurate and comprehensive information through the offering circular. By effectively communicating the details and risks associated with the investment, companies can instill confidence in potential investors.

The nature of Reggae Plus investors is diverse, ranging from Main Street investors to accredited investors. Main Street investors, in particular, are often optimistic and inclined to invest through online platforms. Leveraging advertising instruments and email marketing can help reach these investors and offer them a democratic access to investment opportunities.

It is also important to consider the impact of Apple's privacy moves, which have made marketing and targeting specific audiences more challenging. Advertisers must navigate the changing landscape of data privacy regulations and adjust their strategies accordingly.

Nature of Reggae Plus Investors

Reggae Plus attracts a broad range of investors, with Main Street investors being a significant demographic. These investors, who may not have had previous opportunities to invest in private companies, now have access to promising ventures through Reggae Plus. Accredited investors also engage with Reggae Plus offerings due to the instrument's increased credibility and potential for higher returns.

However, it is important to note that marketing to accredited investors is not always easy, as they tend to be more skeptical and sophisticated in their investment decisions. Building trust and providing a compelling value proposition are crucial to attracting these investors.

Conclusion

Reggae Plus has revolutionized the way companies raise capital, offering increased flexibility, accessibility, and liquidity. Companies can leverage the advantages of Reggae Plus to retain control, access larger capital amounts, and conduct various types of public offerings. The listing options, reporting obligations, costs, and marketing strategies associated with Reggae Plus require careful planning and execution. By navigating the Reggae Plus landscape effectively, companies can unlock new growth opportunities and connect with a diverse range of investors.

Highlights

• Reggae Plus is a public offering that allows companies to raise capital and retain control of their business.
• Companies can raise up to $75 million per 12-month period through Reggae Plus.
• Liquidity is provided to insiders and investors, and various types of public offerings can be conducted.
• Listing options include alternative trading systems, international exchanges, and IPOs via underwritten support or direct listing.
• Companies have reporting obligations depending on the tier of their Reggae Plus offering, with ongoing financial reporting requirements.
• Costs associated with a Reggae Plus offering include initial qualification expenses and marketing expenses.
• Marketing a Reggae Plus offering requires compliance with SEC regulations and protection of novice investors.
• Main Street investors and accredited investors are attracted to Reggae Plus offerings, presenting unique marketing challenges.
• Reggae Plus offers companies a new approach to capital raising, providing increased accessibility and liquidity.

FAQ

Q: What is Reggae Plus? A: Reggae Plus is a type of public offering that allows companies to raise capital while retaining control over their business.

Q: What are the advantages of Reggae Plus? A: Reggae Plus offers increased capital raising ability, liquidity for insiders and investors, retained control of the company, and various types of public offerings.

Q: Can companies list on major exchanges through Reggae Plus? A: Yes, companies can choose to list on major exchanges such as NASDAQ or NYSE or explore alternative trading systems (ATS) or international exchanges.

Q: What are the reporting obligations for Reggae Plus? A: Reporting obligations depend on the tier of the Reggae Plus offering, with tier two requiring US GAAP audits and ongoing financial reporting.

Q: What are the costs associated with Reggae Plus? A: The costs include initial qualification expenses and marketing expenses, with the total cost ranging from 10% to 14% of the total capital raised.

Q: How can companies market a Reggae Plus offering? A: Companies can leverage advertising instruments, email marketing, and customer lists while complying with SEC regulations and protecting novice investors.

Q: Who are the investors in Reggae Plus offerings? A: Reggae Plus attracts a diverse range of investors, including Main Street investors and accredited investors.

Q: What are the highlights of Reggae Plus? A: Reggae Plus revolutionizes capital raising by providing flexibility, accessibility, and liquidity for companies while offering a new investment opportunity for Main Street and accredited investors.