On November 26, 2024, Netcapital Inc. (Nasdaq: NCPL, NCPLW) disclosed that its wholly owned subsidiary, Netcapital Securities Inc. (NSI), has been greenlighted by the Financial Industry Regulatory Authority (FINRA) to function as a FINRA-member broker-dealer.
This approval grants NSI the authority to conduct private placements of securities and referral business, facilitate companies in raising equity capital under Regulation A (“Reg A”) and Regulation D (“Reg D”), collaborate with other broker-dealers to syndicate deals, as well as levy fees on capital raised under Reg A and Reg D and engage in fee-sharing agreements with other broker-dealers.
Furthermore, a press release detailing this development has been appended as Exhibit 99.1 to the Current Report on Form 8-K filed by the company.
In the attached Exhibit 99.1, Netcapital Inc. elaborated on key points, emphasizing that the approval fortifies NSI’s capabilities in engaging in private placements of securities, supporting companies in capital raising endeavors under Reg A and Reg D, partnering with other broker-dealers to syndicate deals, and broadening the investment horizons presented to their investor base.
“This is a significant achievement for Netcapital, enabling us to expand our offerings and enhance our client service by facilitating larger capital raises,” Martin Kay, CEO of Netcapital Inc., remarked in response to the approval.
Netcapital Inc. is a financial technology (fintech) entity equipped with a scalable technology platform that enables private companies to secure capital through online means while extending private equity investment opportunities to interested parties. The company’s consulting arm, Netcapital Advisors, provides strategic counsel and holds equity stakes in select entities. Additionally, its funding portal, Netcapital Funding Portal, Inc., is registered with the U.S. Securities & Exchange Commission (SEC) and is a member of FINRA.
The release went on to address forward-looking statements, cautioning about risks, uncertainties, and factors that could lead to discrepancies between projected outcomes and actual results. Netcapital Inc. affirmed a commitment to providing updates on these forward-looking statements as circumstances evolve.
Investors seeking additional information can contact Netcapital at 800-460-0815 or reach out via email at ir@netcapital.com.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Netcapital’s 8K filing here.
About Netcapital
Netcapital Inc operates as a fintech company. It offers Netcapital.com, an SEC-registered funding portal that enables private companies to raise capital online, as well as allows investors to invest from anywhere in the world. The company also provides various services, including automated onboarding process and filing of required regulatory documents; compliance review; custom-built offering page on its portal website; third party transfer agent and custodial services; and rolling closes which provides access to liquidity before final close date of offerings, as well as assistance with annual fillings and direct access to team for ongoing support.
