What is a Private Placement Memorandum (PPM) ?
A Private Placement Memorandum (PPM) is the document that discloses everything the investor needs to know to make an informed investment decision. This includes: the offering structure, the share structure of the company, SEC required disclosures about the securities being purchased, company information, information about company operations, risks involved with the investment, terms of securities being sold, management information, use of proceeds, information on certain transactions that could affect the investor, and investor suitability data. The PPM also includes the subscription agreement which is the actual “sales contract” for purchasing the securities. This is the document that the investor will sign and send in with their investment funds. PPMs are designed as a stand-alone document – there does not need to be other information presented to the investor for them to make an accurate investment decision. Many companies will attach their business plans to the PPM as supporting do
A Private Placement Memorandum is the document that discloses everything the investor needs to know to make an informed investment decision. This includes the offering structure, the share structure of the company, SEC required disclosures about the securities being purchased, company information, information on company operations, risks involved with the investments, terms of securities being sold, management information, use of proceeds, information on certain transactions that could affect the investor, and investor suitability data. The PPM also includes the subscription agreement which is the actual “sales contract” for purchasing the securities. This is the document that the investor will sign and submit with his investment.
