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3 New IPOs Making History

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Two years after Title IV of the JOBS Act, which allows companies to raise money via the Regulation A+ route, was passed it is finally starting to gain some momentum. In the last month, three companies completed successful IPOs after raising money through a Reg A+ campaign. In short, a Reg A+ offering allows small companies to raise up to $50 million in a 12-month timeframe from both accredited and unaccredited investors. Until Reg A+ was put into effect, private companies had to rely on only accredited investors (top 2% of Americans). Now, all Americans have the ability to invest as little as a few hundred dollars in private companies in hopes they own a piece of the next Facebook or Google.

 

What makes the recent developments so exciting is that all three companies began trading on national exchanges, not the OTC markets. Adomani (NASDAQ: ADOM) became the first Reg A+ company to begin trading on the NASDAQ on June 15. The company raised $14.4 million from investors via Reg A+ at a per share price of $5.00. On July 7 the electric power conversion company closed at $16.85 per share and is trading with a market cap of $1.15 billion.

 

Myomo, Inc. (NYSE: MYO) was the first Reg A+ to go directly to the NYSE MKT exchange on June 12 after raising approximately $5 million at $7.50 per share. The stock rallied as high as $23.20 one week after the IPO and has since pulled back to close July 7 at $9.81 per share. The maker of medical robots has a market cap of $59.1 million.

 

The second company to list on the NASDAQ, ShiftPixy, Inc. (NASDAQ: PIXY), raised $12 million at $6.00 per share and began trading on June 30. The stock closed at $10.18 on July 7. The provider of human capital management services is trading with a market cap of $332.9 million.

 

With all three stocks trading above their Reg A+ it should begin to open the eyes of the average investor that has the ability to take advantage of the hundreds of other companies looking to raise money in the hopes of uplisting to a national exchange. In my opinion this will be the new way that small companies go public in the future and after only two short years it appears that I may be correct in my assumption. I am not just a mouthpiece talking up the Reg A+ opportunities, I actually put my money where my mouth is and started an equity crowdfunding platform.

 

Matt McCall is the owner and CEO of CrowdVest.co, an equity crowdfunding platform focused on Regulation A+ offerings.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: JOBS act Regulation A+News Small Cap Analysis Legal IPOs Markets Trading Ideas

 

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