Keystone Solutions, a Virginia-based company that helps write proposals for government contracts, has completed its Tier 2 Regulation A offering. The company announced in SEC filings on March it raised $5,023,270, well short of its $30 million goal.
A New Jersey-based real estate investment trust has given up trying to raise $50 million through a Tier 2 Reg A offering.
The Securities and Exchange Commission qualified the sale of shares on May 13, 2016. The issuer set a minimum investment of $1000 with shares priced at $10. Hamilton National said in its offering circular that the commercial mortgage lender would not start operations or issue common shares to investors until it has raised at least $2,000,000. The company had no revenue or real estate assets.
“The Company is requesting the consent of the Commission to the withdrawal of the Offering Statement because the Company has determined that there is insufficient investor interest in the securities covered by the Offering Statement to warrant the consummation of the offering,” wrote the company’s general counsel, Joseph E. Teichman, in a March 21 SEC filing.
Hamilton National was sponsored by The Lightstone Group, a diversified real estate company that is among the largest privately-held real estate companies in the country, with holdings in 21 states. John D. Hogoboom, partner at Lowenstein Sandler, is the deal lawyer on the offering. EisnerAmper was the auditor for the deal.
Growth Capitalist interviewed four founders of startups that have filed Reg A offerings this year through AltaVista Capital Markets, a year-old Los Angeles-based firm founded by a securities promoter recently banned from the industry that has been involved in a flurry of recent filings by companies seeking to raise capital via Reg A.
Steven Muehler is no stranger to securities regulators, despite never having a securities license. The SEC has tracked his involvement in the sale of unregistered securities dates back to at least 2008.