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OTC Markets Group Applauds Key Legislation that Includes Expansion of Regulation A+ for SEC Reporting Companies

OTCM

PR Newswire

NEW YORK, May 30, 2018 /PRNewswire/ --  OTC Markets Group Inc. (OTCQX: OTCM), operator of financial markets for 10,000 U.S. and global securities, applauds the May 24, 2018 enactment of the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155), which includes key legislation expanding Regulation A+ to SEC reporting companies.

Regulation A+ allows small companies to raise up to $50 million online, transparently and directly from the public without the extensive cost burden of a full SEC public offering.  However, the SEC initially did not allow SEC reporting companies to raise capital through Regulation A+.

The passage of The Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155) marks a pivotal milestone for smaller companies and issuers. Section 508 of the bill incorporates the Improving Access to Capital Act, which was based in large part upon OTC Markets Group's 2016 SEC Petition for Rulemaking.  The Improving Access to Capital Act, which amends Regulation A+ to allow SEC reporting companies to use this innovative capital raising tool, was originally passed by the House of Representatives in September 2017 in a bipartisan, 404-3 vote. 

"We are pleased to see the culmination of our advocacy to extend the benefits of Regulation A+ eligibility to SEC reporting companies," said Cromwell Coulson, Chief Executive Officer and President of OTC Markets Group. "This key change will be instrumental in leveraging technology to fuel small company capital formation and increase the number of public companies that can efficiently access our capital markets."

OTC Markets Group has been a strong proponent of the JOBS Act since it was enacted in 2012 and continues to support initiatives that promote small company capital formation, entrepreneurship and small business growth. 

"Allowing fully SEC reporting companies to utilize Regulation A+ enhances capital formation opportunities for these job-creating companies," said Dan Zinn, General Counsel for OTC Market Group.  "We thank the members of the House and Senate who voted to pass S.2155, and specifically appreciate the work of Congresswoman Kyrsten Sinema (D-AZ) and Congressman Trey Hollingsworth (R-IN), who were the lead sponsors of the Improving Access to Capital Act in the House.  The efforts of Representatives Sinema and Hollingsworth, along with cosponsors Rep. Roger Williams (R-TX), Rep. French Hill (R-AR), Rep. Luke Messer (R-IN), and Rep. Brad Sherman (D-CA), led directly to this important initiative becoming law."

About OTC Markets Group Inc. 
OTC Markets Group Inc. (OTCQX: OTCM) operates the OTCQX® Best Market, the OTCQB® Venture Market and the Pink® Open Market for 10,000 U.S. and global securities.  Through OTC Link® ATS and OTC Link ECN, we connect a diverse network of broker-dealers that provide liquidity and execution services.  We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors.

To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

OTC Link ATS and OTC Link ECN are operated by OTC Link LLC, member FINRA/SIPC and SEC regulated ATS.

Subscribe to the OTC Markets RSS Feed

Media Contact:
OTC Markets Group Inc., +1 (212) 896-4428, media@otcmarkets.com

OTC Markets Group logo. (PRNewsFoto/OTC Markets Group)

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/otc-markets-group-applauds-key-legislation-that-includes-expansion-of-regulation-a-for-sec-reporting-companies-300656122.html

SOURCE OTC Markets Group Inc.



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