What is a Private Placement Offering (PPO) ?
A Private Placement Offering (PPO) refers to any type of offering of securities to an unlimited number of private accredited and usually a limited number of nonaccredited investors. Securities offered through a private placement are exempt from registration with the Securities an Exchange Commission (SEC), provided that the appropriate offering documentation is prepared in compliance with Federal and State regulations (usually referred to as the Private Placement Memorandum or PPM). To determine whether a private placement is a sensible strategy for your entity, you must: a) have a fundamental understanding of federal and state securities laws affecting private placements; b) be familiar with the basic procedural steps that must be taken before this capital formation alternative is pursued; and c) have a team of qualified professionals to assist in structuring the appropriate offering type, offering terms and offering documentation.
A Private Placement Offering refers to any type of offering of securities, usually the shares of stocks of the corporation, to any number of private accredited investors. Securities offered through private placements are exempt from registration with the Securities and Exchange Commission (SEC), provided that the appropriate offering documentation is prepared in compliance with Federal and State regulations (usually referred to as the Private Placement Memorandum or PPM).
