NEW YORK, NY, June 12, 2018 – BANQ®, a leading Reg A+ electronic broker-dealer and division of TriPoint Global Equities, LLC, announced that today marks the one-year anniversary of the first Reg A+ to list on a national securities exchange.
TriPoint with thru its BANQ® platform made history on June 12, 2017, acting as the Selling Agent for Myomo, Inc. (NYSE American: MYO), the first company to use Reg A+ to list a national securities exchange (i.e. NYSE or NASDAQ). This historic offering demonstrated that the BANQ® methodology successfully provides small-cap issuers and entrepreneurs with an ability to access capital and communicate in a modern form using social media and digital marketing, effectively marrying main street with wall street. Reg A+ offerings that use the BANQ® methodology are able to look, feel and settle like traditional offerings. The BANQ® methodology is bringing back the small cap ipo.
Regulation A (now referred to as Reg A+) was expanded through Title IV of the Jumpstart Our Business Startups Act, or JOBS Act, and permits small businesses to raise up to $50 million using general solicitation. BANQ® immediately recognized that Reg A+ IPOs are the new alternative to traditional S-1 IPOs. These Reg A+ offerings are not short-cut filings, as some commentators have indicated, as the offering circular on Form 1-A must go through SEC and exchange review prior to commencing the offering. Companies with large social media followings and loyal customer bases can use Reg A+ to access their customers, followers and fans, in addition to the traditional equity markets, in order to complete public offerings. This is where main street meets wall street.
The BANQ® team believes that Reg A+ is not just for equity offerings, but can be an effective methodology for the sale of crypto or token offerings in a manner that complies with securities law and regulation as well. The BANQ® team hopes to continue making history by combining its deep experience in the equity capital markets with its tech-focused platform to become the global leader in fully-compliant Security Token Offerings using Reg A+. Our methodology will allow reputable technology companies to raise capital in a compliant and regulated manner. Issuers looking to conduct a token offering can submit their opportunity to firstname.lastname@example.org.
Since the Myomo offering, there has been several Reg A+ offerings that trade on either the NYSE or NASDAQ, proving that Reg A+ is a successful means for issuers to raise capital. However, Reg A+ issuers have faced challenges in effectively navigating the small-cap market once listed. This challenge is not limited solely to Reg A+ issuers, but rather the entire small-cap new issue market. Reg A+ is in its infancy and the offering process is improving with each successful transaction. It has been only one year since the first Reg A+ to list on a national securities exchange, but BANQ believes this is the future of small cap underwriting.
“Reg A+ potentially is the greatest innovation in capital raising since Reg D itself in early 1980s. It allows a company to raise money and allow their customers and fans to become shareholders. Through BANQ®, iconic brands and issuers have a platform to reach the investing community.” stated Mark Elenowitz, CEO of TriPoint Global Equities. “Reg A+ is the return of the small-cap IPO. We believe that Reg A+ will also be the gateway to modern financing for the digital and crypto world.”
Reg A+ has also proven to have additional benefits that were initially unforeseen. Reg A+ not only provides a means to convert customer and followers into shareholders, it also provides a means for the public to become aware of the company and convert into customers. Myomo, Inc. manufactures an exo-skeleton that enables an individual with partial paralysis to gain mobility and function in their upper limbs. Prior to their Reg A+ offering, Myomo was unknown to millions of patients suffering from partial paralysis who could benefit from their products. After the Reg A+ was completed, BANQ® received numerous inquiries from patients who were suffering from partial paralysis and saw an advertisement for the Myomo offering, opening the doors for these patients to learn about the company and contact their physician to find relief for their medical condition. Completing a Reg A+ offering provides companies the ability to reach a broad audience that they would have not reached otherwise.