Regulation A lets companies skip traditional IPOs and raise money straight from individual investors through crowdfunding. Newsmax used this approach, oversubscribed its offering, then listed on the NYSE and traded strong. It's becoming a real alternative for companies with loyal audiences.
There's a company called Newsmax that just did a specialized form of an IPO called a Regulation A or Reg A IPO. And this is utilizing direct-to-investor program. So in the US, it's for US-based companies. They can utilize an exemption to securities laws that were created under Obama's administration called the JOBS Act, and that you can actually raise capital under a less regulatory scrutiny without an underwriter and sell shares directly to individual investors under these crowdfundings. So Regulation A, I think, is a trend we're gonna see more and more of. It's great for a company like that that has a big following, that has subscribers and loyal followers. So they oversubscribed their Regulation A offering, and then they opened up, actually that was on the NYSE as well, and had tremendous success in their trading and is kind of the demonstration of what is an alternative to a traditional IPO. Yeah.
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