Law360 Quotes Spencer Feldman on Myomo Inc.’s “Mini IPO” Under Reg. A+

A June 12 Law360 article quoted Olshan Corporate Partner Spencer Feldman on Myomo Inc.’s recent “mini-IPO,” making the medical robotics company the first to list its shares on a national securities exchange (NYSE-MKT) after going public under the SEC’s Reg. A+ rules. The Reg. A+ rules, which went into effect in March 2015 and were designed to help smaller securities issuers generate capital, have stimulated considerable interest, but it was unclear exactly when or how many companies would be able to get their shares publicly traded on the NYSE or Nasdaq to allow for adequate shareholder liquidity. Given that another Reg. A+ company is already set to debut this week, Mr. Feldman is assured of follow-on offerings: “This gives us confidence that the Reg. A+ path is viable for going public.”  Compared to a small Form S-1 IPO, with Reg. A+, he added, issuers are “obtaining preemption from state securities laws — known as blue sky laws — [which] is valuable to Tier 2 issuers. If such companies fall short of their fundraising goals and fail to meet the exchange's listing requirements, they can opt instead to trade over the counter and seek later to uplist onto a major exchange. That option is foreclosed for a company that fails in its bid to complete a conventional IPO because it wouldn't have obtained ‘blue sky’ approvals.”