What is a private placement offering?
A private placement offering is the offer and sale of restricted securities to investors. Securities laws and regulations provide that unregistered securities (where offering documentation is not filed for review with securities regulatory authorities) may be offered to prospective investors if certain rules are followed by the company or person offering the security. A restricted security cannot be freely bought and sold by holders (owners of the security). Restricted securities, generally speaking, must be offered for sale by private means of solicitation (people you know who help you get the word out without advertising or contact with strangers). The people or entities to which the security is offered (the offerees) must be qualified (have some degree of investment sophistication and financial resources). The offering person or entity must be sure to make legally sufficient disclosure of material facts about the security being offered, the offering company (the offeror) and the und
