The current securities regulations provide exemptions from the securities registration requirements for smaller offerings not made to the general public. Such exempt offerings are known as “private placements.” In order to qualify for an exemption from registration, a private placement must comply with limitations on the method of sale of the securities and the number and relative sophistication of investors. A private placement allows a company to raise capital by selling securities to a limited number of sophisticated investors without having to go through the time and expense of formally registering with the Federal Securities and Exchange Commission.
Regulation of private placements requires disclosure of all material facts about the securities and the business offering them. The documents which make this disclosure are called either prospectuses or private placement memoranda (PPM).
The attorneys at Keith, Miller, Butler, Schneider & Pawlik, PLLC are frequently retained to guide their clients through the complex process of raising capital in the private capital markets. We work in tandem with our clients to help decide upon the most beneficial private offering strategy. Our attorneys strive to understand each client’s specific needs and precise business objectives, and turn that understanding into carefully crafted private offering plans tailored to that client’s particular situation. With attorneys practicing in a range of related finance and securities law disciplines, Keith, Miller, Butler, Schneider & Pawlik can take our clients from the initial business planning and preparation for a private placement, to advising on compliance with Regulation D and other securities laws, to strategically growing the business after sufficient capitalization.