As we noted here, the SEC temporarily suspended the Tier 2 Regulation A+ offering of Med-X, Inc. The SEC stated it temporarily suspended the offering because Med-X has not filed its annual report on Form 1-K as required by Rule 257.

An administrative law judge has now vacated the suspension after determining the failure to file was inadvertent and based on erroneous advice of an experienced securities law practitioner.

The decision notes that investors were not significantly harmed and that a permanent suspension would not only adversely impact Med-X investors, but would unreasonably chill the use of Regulation A to raise capital. The decision notes “It is quite likely that companies would not use tier 2 for small offerings if accidental noncompliance with its reporting provisions results in permanent suspension and “bad actor” disqualification.”