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May 01 2015

Allegiancy CEO Steve Sadler to speak about “The Next Step in Crowdfunding: Reg A+” at the National Press Club

Sadler to share company’s experiences in preparing new private offering

Washington, D.C. Allegiancy CEO Steve Sadler will speak about the vast potential that Reg A+ creates for businesses and investors at the Crowdfunding USA Forum on Thursday and Friday, May 7-8, at the National Press Club.

Sadler speaks from personal experience, because his company, Allegiancy, will file with the SEC to be among the first to use Reg A+ to raise capital. Sadler is currently drafting materials for a $30 million Reg A+ offering expected to be available to the public in September of 2015.

Allegiancy used the predecessor, Reg A, and partnered with Moloney securities to successfully raise $5 million last year to be poised for Reg A+. Sadler speaks as a real-life example of someone who has actively raised capital in the market to build his company, create jobs, and offer alternative investment opportunities for investors seeking income.

**Media: A press conference will be held for all speakers from 9 a.m. to noon on Friday, May 8, at the National Press Club.   To obtain credentials, contact Sydney Armani at (888) 580-6610 or (415) 879 1500 or armani@crowdfundbeat.com.  

Steve Sadler is available for personal conversations, background, and interviews on Thursday, May 7, and will be available for interviews on Friday, May 8.**

Sadler’s Participation and the Crowdfunding USA Forum

Sadler will participate in the Crowdfunding USA Forum’s Thursday morning roundtable sessions about the “JOBS Act – 2.0,” “Application of JOBS Act 1.0,” and the “Impact of REG A+,” among others.

On Thursday afternoon, Sadler will give a keynote presentation about “The Next Step in Crowdfunding: Regulation A+.”   He will describe the vast potential for A+ for both small and medium-sized enterprises (SMEs) and investors; the regulatory nuances; Allegiancy’s experience in raising capital under Reg A; and his company’s current work to raise capital under Reg A+.

Other notable speakers/participants include Richard Swart, director of research in Entrepreneurial and Social Finance at the University of California-Berkeley and partner in Crowdfund Capital Advisors; and Samuel Guzik, corporate and securities attorney and authority on the JOBS Act and Regulation A.

CrowdFundBeat and Crowdfunding USA Forum

CrowdFundBeat, a leading webzine, is producing the roundtable discussions and presentations known as “Crowdfunding USA Forum.”   Convening at Washington’s National Press Club, a select group of thought leaders, industry leaders, and policymakers gather to consider the future of alternative finance.

Participants will discuss and debate “Crowdfunding,” “Shadow Banking,” or finance activity outside the regulated banking environment – which are expanding at breakneck speed, involving new players in many segments, and whittling away at banks’ conventional product lines and profitability.   This forum examines new methodologies within consumer and SME finance, payments, markets and currencies, and discuss the possibilities and effects on the changing space.

Media partners include Equities.com, Crowdsourcing.org, The Washington Post, CNN Money, and Market Wired. For more information, visit www.crowdfundingusa.com.

Background: The Reg A+ Revolution

As part of the 2012 Jumpstart our Business Startups (JOBS) Act, the U.S. Securities and Exchange Commission (SEC) announced in March the new rules for Reg A+, which are widely expected to be a game-changer for countless SMEs and investors.

Reg A+ increases the amount a private company can raise through a public securities offering from $5 million to $50 million per year. Critically, the new rules allow for the pre-emption of state regulators, creating the ability to sell securities in all 50 states, as well as allowing non-accredited investors to buy in.

Commenting on the potential effects of Reg A+, Allegiancy CEO Sadler said: “If Reg A+ does what experts and Congress expect, and helps small and medium-sized companies in this country raise capital and grow, that will be a significant change that many will see and feel.”

“Reg A+ can help create a job opportunity for your daughter who is graduating from college next year,” Sadler said. “It can help create a job for your husband or wife who just got laid off. Reg A+ can help grow small businesses on Main Street; previously, money was available to grow only the biggest companies on Wall Street.”

“In addition to helping create jobs and grow businesses, Reg A+ can also help build peace of mind in retirement for the older generation,” Sadler said. “This is also a revolution for the smaller investors who have been subject to financial repression by low interest rates,” he said, noting many 70-year-olds he knows who are still working because their retirement investments aren’t generating enough income.

Sadler’s Previous Forums and Articles

Sadler’s past presentations have included “The State of Entrepreneurial America” and have yielded interesting facts about how few new businesses are being created in America; how the enormous opportunities created by Reg A+ could change that; and how the private company market is estimated at nearly $70 trillion in value — far exceeding that of public companies.

Sadler has spoken extensively around the nation about Reg A+, including at REISA’s Annual Conference in Las Vegas; iGlobal Forum’s 11th and 12th Real Estate Private Equity Summits in New York; Moloney Securities Annual Meeting in St. Louis; Oak Tree Securities Conference in Lake Tahoe; at the “Small Cap & Alternative Financing Revolution Event” in Boca Raton hosted by crowdfinancing leader Dara Albright; and at the FSX Interlinked Conference in Atlanta.

Sadler has been quoted about Regulation A+ in Invezz, NerdWallet, and CrowdfundInsider, among many others.

Sampling of Provocative Quotes to Expect about Reg A+

From NerdWallet:

“Steve Sadler, CEO of Allegiancy, a Richmond, Virginia-based commercial real estate company, has been an outspoken proponent of what’s being called Regulation A+. His company raised money under the old and Regulation A provisions, and he says it intends to seek an additional $30 million in funding under the new regulations.

“Reg A+ is all about opening doors for small businesses who previously couldn’t access the capital they needed to grow,” Sadler said. “For too long, the equity markets have been broken and have kept smaller, promising companies on the sidelines. Reg A+ is about creating jobs and new opportunities. And it’s about giving regular folks access to investments that only a handful of venture capital and private equity bigwig investors have enjoyed up until now.”

From CrowdfundInsider:

“One sector that may quickly benefit are Real Estate crowdfunding platforms – one of the hottest segments in crowdfunding today. … Allegiancy, a Richmond based real estate asset manager, indicated they were already ready to go forward leveraging Reg A+.  Steve Sadler, CEO of Allegiancy, said his company will be one of the first to become an active participant in the new Reg A+ marketplace.”

From Steve Sadler:

“The additional capital will help us grow our firm faster, but Reg A+ is about much more than Allegiancy. Reg A+ eliminates limitations that have prevented smaller investors from gaining access to private security offerings.”

“For example, our little company will pay out 6 percent dividends, or $300,000, in the first year to savers and investors who have entrusted us with their capital under Reg A. To have this kind of alternative in today’s low yield 2-percent environment, even for a portion of your retirement portfolio, is meaningful.”

ABOUT Allegiancy

Allegiancy is changing the business of asset management for commercial real estate owners and investors. With an advanced technology platform and singular focus on serving as the owners’ advocate, the company brings fresh vigor to an often poorly understood business. Combining its proactive Value Assurance? operational rigor with an intense focus on cash flow and profitability, Allegiancy is expanding on a track record of more than four decades of success.

Headquartered in Richmond, Va., and led by a team of seasoned professionals with more than 100 years of experience, Allegiancy manages properties that have outperformed their peers by 45 percent since 2006. The company has more than $300 million in assets under management (AUM) and delivers clients attractive returns and profitable, hassle-free investments in commercial real estate. Allegiancy grew by 62 percent last year, largely due to referrals from satisfied clients.

More information about Allegiancy may be found at www.allegiancy.us. To schedule an interview with Allegiancy’s leadership, contact Audrey Bevel at audrey@allegiancy.us or 866.842.7545 ext. 204, or (804) 201-7161.

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This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon the Allegiancy, LLC’s (the “Company”) present expectations, but these statements are not guaranteed to occur. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” section of the offering circular dated January 14, 2014 and filed by the Company with the U.S. Securities and Exchange Commission on January 15, 2014. The offering circular, and any supplements or updates thereto, is available on the EDGAR system located on www.sec.gov.