Regulation D 506(c), a provision under the Securities Act of 1933, enables companies to raise capital without SEC registration. Preparing for a private placement involves creating a detailed Private Placement Memorandum (PPM). A PPM is a legal document outlining the offering’s material details. Components include an introduction, offering terms, risk factors, management, use of proceeds, financial information, legal information, subscription procedures, and exhibits. Its purpose is to provide potential investors with comprehensive information for informed decision-making. Issuers can raise unlimited funds from accredited investors but must take reasonable steps to verify accreditation.
Private Placement
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