February 5th, 2025
TIPS FOR SUCCESS
Tip of the Month: Navigating the Digital Asset Market in Reg A Offerings
As digital assets continue to evolve, issuers leveraging Regulation A must stay ahead of key trends and compliance considerations. Here are some essential tips for success in the digital asset market:
Regulatory Compliance is Key – The SEC has increased scrutiny on digital asset offerings under Reg A. Ensure your offering meets all disclosure requirements and adheres to anti-fraud and investor protection standards.
Tokenization Can Enhance Liquidity – Digital assets and tokenized securities can offer increased liquidity and transparency. Consider how blockchain-based solutions can improve secondary market trading and investor accessibility.
Investor Education Matters – Many retail investors are new to digital assets. Clear, easy-to-understand disclosures and risk assessments can help build trust and confidence in your offering.
Choose the Right Technology Partners – From smart contract security audits to compliant digital securities platforms, working with reputable technology providers ensures smooth execution and security for your investors.
Stay Ahead of Evolving Regulations – The digital asset market is fast-moving. Regularly monitor SEC guidance, enforcement actions, and industry best practices to remain compliant and competitive.
Key Takeaways: The digital asset market presents exciting opportunities for Reg A issuers, but compliance and investor trust are critical. A well-structured, transparent, and legally sound approach can position your offering for success.
FEATURED DEAL
Avvenire Electric Vehicles Corp. is on a mission to become a global leader in the Electric Vehicle (EV) market by developing the next generation of cutting-edge, cost-effective and environmentally-sustainable lineup of holistic transportation solutions for everyday use.
Key Highlights:
- Current pre-order book exceeds USD $1.1 Billion for Avvenire products
- Established dealer network with over 200 dealers ready to take new Avvenire Products and over 300 new dealer requests, for a total of over 500 potential dealers
- Management team includes pioneers in the LEV industry in Canada leaning on decades of experience
- Strong advisory board to achieve the hypergrowth expected
- Manufacturing plans to add 270,000 square-foot plant in place to add to production and distribution from present 75,000 square-foot location
Avvenire is raising $75 million through Regulation A+, for more information on the offering view the offering circular here.
FEATURED ARTICLE
Managing Risk in Digital Asset Investment Strategies
The digital asset market has grown exponentially in recent years, with a current market capitalization of approximately $3.67 trillion, primarily led by Bitcoin and Ethereum. However, despite its immense growth potential, digital asset investing remains highly volatile, with price fluctuations driven by regulatory changes, technological advancements, and market sentiment. As such, risk mitigation strategies are crucial for investors seeking to capitalize on opportunities while safeguarding their portfolios against unpredictable market movements. Experienced investment advisors with risk management experience would take a strategic approach to investing in digital assets by incorporating well-known risk management techniques that provide yield-generating opportunities while mitigating inherent risks.
Key Risk Mitigation Strategies
There are numerous strategies to employ risk mitigation techniques to ensure a balanced approach to digital asset investing. These strategies include:
ENTORO INSIGHTS
HOUSTON, TX and LONDON, UK — Entoro Capital, LLC (Entoro Capital), a leading investment bank and advisory firm based in Houston, and Archax Ltd (Archax), a pioneering digital securities exchange, broker and custodian based in London, announced today a strategic alliance aimed at enhancing the digital securities and investment landscape. This partnership will leverage both firms' strengths to provide unparalleled services and opportunities in global financial markets.
Under the agreement, both Entoro Capital and Archax will facilitate projects and collaborations that lead to significant financial transactions and investment opportunities, for the benefit of their respective clients. This alliance is designed to capitalize on each firm’s expertise and market presence, thereby expanding their market reach. Key areas of focus include leveraging the parties’ leadership in the areas of Tokenisation, Digital Real-World Assets (RWAs) and Securities, and Voluntary Carbon. Archax will also work closely with Capturiant, an Entoro affiliate, the leading engineered solutions environmental asset authenticator, registry, and exchange, by acting as custodian and strategic partner within the United Kingdom.
MARKET YOUR OFFERING
American Stories is a fan-focused, self-distributing, independent TV production company that specializes in capturing the essence of American culture through uplifting, inspiring unscripted shows.
Our goal is to shed light on the stories, lifestyles, and traditions that make up the fabric of this great nation. With support from fans and investors, we are on a mission to bring authentic, captivating stories from the American heartland and beyond to screens everywhere. Join us in our journey to preserve the spirit of America and invest in the future of independent TV production.
Learn More!
REG A+ FAQs
What is a Security Token Offering?
A security token is a token that is sold to investors via one of the SEC regulations - Reg D, Reg S, Reg A+ and Reg CF are good examples. A Registered S-1 IPO is another route.
It is important to note that a token that is a security is not required to have the same characteristics as a share of stock. When you define your token security, it is your choice what the rights are that you assign to your tokens. So things like ownership rights, profits, dividends and preferences that are often assigned to share ownership may or may not be part of your token security.
What kind of funding is not allowed under Reg A+?
Reg A+ does not allow funding for the following:
• Companies with headquarters outside the U.S. or Canada. It is fine to move or set up the legal headquarters in the US or Canada for international businesses.
• Investment companies as defined by the Investment Company Act of 1940. Pure venture capital firms cannot use Reg A+. VC firms that are Debt based (minimum of 60% debt holdings) are allowed to use Reg A+ in specific circumstances - ask us and your securities attorney.
• Public companies. Reporting and non-reporting public companies are allowed to use Regulation A+.
• Development stage companies with no business plan or purpose.
• Companies issuing fractional, undivided interests in oil, gas, or mineral rights.
• Companies disqualified under the “bad actor” rules.
WATCH NOWSee why so many Issuers trust us to facilitate a successful offering.
CONSIDERING A REG A+ OFFERING?
Entoro Capital is a FINRA-registered Broker-Dealer in all 50 states, Puerto Rico, and the District of Columbia. The top choice for a Reg A+ broker-dealer and will answer all your questions. We support Issuers through the entire Reg A+ process from pre-filing preparation, to SEC review, marketing selection, and completion of the offering. Call Entoro today and let our team show you how to Reg A+ the right way.
ENTORO REG A+ CONTACTS
Sean Levine
Managing Director
Entoro Capital, LLC
D: +1 917.715.1489
E: slevine@entoro.com
Abdissa Gemechu
Director
Entoro Capital, LLC
O: +1 713.823.2900
E: agemechu@entoro.com
.png)
