What is the maximum amount of secondary sales allowed by security holders under Tier 1 of Regulation A+?

Under Tier 1 of Regulation A+, security holders are allowed to engage in secondary sales of up to $6 million within a 12-month period. This provision is designed to provide liquidity for existing security holders while allowing smaller companies to raise capital in a more streamlined process than traditional public offerings.

Regulation A+ was established to facilitate capital raising for smaller entities by reducing regulatory burdens, making it easier for them to reach a broader investor base. The limit on secondary sales under Tier 1 helps maintain oversight and investor protection while still encouraging market activity.

This specific cap of $6 million reflects the regulatory intent to balance the need for flexibility in capital markets with adequate safeguards against potential risks associated with secondary trading. The other values do not align with the regulatory limits set forth in Tier 1, emphasizing the importance of understanding these thresholds in the context of securities regulation.