Posts Tagged ‘private placement memorandum’
Tuesday, June 29th, 2010
The US is a game preserve and the entrepreneur is the endangered species being hunted by political poachers. Don’t expect a solution by government bureaucrats that use band aids intended to provide a temporary and sub-modest patch up, only problem is this band aid is suppose to close up a bazooka shot to the chest so don’t wait on resolutions that will have a lasting effect.
So what is the solution? When a company is fighting for survival who can they turn to? Two groups that will only hang string you up and hang you to dry are politicians and institutional banks. Both of these sectors of industry are parasites who will eat you from the inside out and then transform into maggots to feast on your rotting flesh.
Strange wording for a financial paper but this is reality. So again, who can you turn to for guidance? That answer is both simple and simultaneously complicated as there are multiple sub sectors of finance each with their own good and bad issues. Seek out a consulting firm that offers turnkey solutions with a contact portfolio that could gag a horse.
To raise money and facilitate quality strategies that will get you from point A to point B a consultant must have contacts with accredited investors, investor relations strategists, market makers, securities attorneys who can bang out 10k and 10q’s as well as constructive counsel for mergers and acquisitions to assist in strategic growth. Your consultant also needs to know where to look and uncover powerful strategic partners that can enhance and induce your company’s expansion efforts.
Many companies are using a regulation d solution also known as a private placement memorandum which uses the SEC loopholes of Reg D 504, 505 and 506 for pre public fundraising and bypass the ‘wild west’ factor of the pink sheets and go to a pre NASDAQ trading platform such as the OTCBB. A solid consultant can complete the task but qualifying them should not constitute drilling them on past transactions and other pointless interrogation tactics as this will only push away the good consultants and bring the scumbags in by the truckload as this type of skepticism is something that the fly-by-nights are comfortable with and use to. Instead ask them for a plan on how they anticipate taking your company from the beginning to fund raising stardom.
Their plan should include corporate structuring and strategies, board of directors selection, advisory board selection, acquisitions strategy, SEC auditor, S1 attorney, market maker for your 15c211 and enough investor relations and corporate publicity to force the continental shelf into movement.
Settle for nothing less than strategic and all inclusive consulting solutions when raising capital and going public or you’ll find yourself in the precarious dilemma of having your public offering piecemealed with no one to hold accountable at the end of the day and believe me, that is the last place you want to be because those companies end up being shelf corporations that are so riddled with holes you can’t even sell them off for a reverse merger.
Get the entire plan from your consultant before signing that contract and moving forward.
Take Your Company Public and have Strong Investor Relations , call Princeton Corporate Solutions at 267-233-0183 or Call Us To Take Your Company Public the easy way!
Tags: Communications, Expansion Consultant, how to raise capital, IPO Consultant, IPO Consultants, james scott, Over The Counter Bulletin Board, private placement memorandum, take company public, take my company public
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Tuesday, February 9th, 2010
Private Placement Memorandums and Direct Public Offerings, the most common mistakes made. When gearing up to raise capital it is typically a business owners first instinct to simply throw together a business plan and find the cheapest company to put together the private placement memorandum and then seek funding. What these professionals don’t realize is that they are doing things in reverse and often times a PPM is not a standalone solution to financial needs.
The first problem is the most companies will first write a business plan and cheap PPM and look for a capital solutions last, when strategically speaking, one should first find a full service solution who has a database of investors ready to fund properly structured corporations with well authored business plans and private placement memos. After you find a company that has a ready network of seasoned investors you will often find that this firm will also structure your business and documents so that you are able to attract the attention of these investors. Next, don’t make the mistake of hiring just anybody to write your biz plan. You need to find a professional author who is well rooted in the art of technical writing and has a solid comprehension of your industry.
Now it’s time to write the PPM. Here is a warning that will most likely go in one ear and out the other but you must never choose the cheapest service for your PPM you will regret it and this is a guarantee. Investors see these documents all day everyday and they know a template when they see it. Don’t believe for a second that you will get a viable private placement memo that will actually achieve funding for anything less than $3,000; it’s just not going to happen. There is too much work involved in putting a fund-able strategy together and you’ll never find an experienced firm to do it for cheap.
The moral of the story is to first find an investor finder solution with a solid network of investors, second have this company write your business plan and private placement memorandum to fit the needs of their investor base and lastly, talk to this consultant about helping you perform a DPO (Direct Public Offering) to their group. This is what separates the men from the boys in the venture capital consulting industry.
Legitimate consultants who stand behind their work will take your PPM directly to their investor base and help you raise capital quickly. In return for this service the company may want a modest equity position in addition to their fee but it is always worth it and typically they will take the final step and have their investors pay to take your company public. This is the ultimate for any company that is seeking a long term funding solution.
Remember the order: 1. Find an investor finder 2. Have that company write your biz plan and PPM 3. Convince the firm to perform a DPO for fast funding 4. Offer some equity to sweeten the pot so that they take you public!
Want To Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Direct Public Offerings and Private Placement Memorandums the easy way!
Tags: Communications, direct public offering, direct public offering dpo, direct public offerings, private placement memo, private placement memorandum, private placement memos, take company public, take company public dpo, take company public otcbb, take your company public
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Sunday, December 6th, 2009
If you’re trying to raise capital there are regulations set forth by the SEC to make sure everyone is conducting business ethically and in a way that can keep one accountable for their actions if fraud takes place. Regulation D Rule exemptions 504, 505 and 506 offer solid fundraising capabilities that can handle most investment needs. Companies typically hire a consulting firm to author these documents and within 30 days you’re off and running and talking to investors; that is, of course talking to investors while staying within the boundaries of Rule 502c which dictates the guidelines for solicitation which means no active promotion of the issuance of your securities.
This basically means that unless you have a bunch of millionaire friends, you’re no better off now than you were before the PPM was created. So, how does one raise capital in an environment which limits the promotion of your offering with such limitations? Easy, corporate publicity! You must have your timing right in order for this to work but here is basically what we do with our clients as we are writing their PPM and what you should do if you already have an Offering Memorandum written. First we make sure that they have a solid presence online, within their industry genre by getting them massive exposure virally using video, social and news bookmarks, press releases, unique article submission, image/photo marketing etc. This exposure is just for basic branding purposes and not advertising the investment opportunity.
This process will draw massive amounts of attention to their company while we use specifically researched tags that will cater to the internet user who is researching their industry and/or looking for this specific company’s position in the marketplace. The next thing that you’ll want to do is promote your company using traditional means such as radio, TV and articles written about your company and executives within the company. Now, these promotions are not ads, instead they are interviews and/or expert conversations where you’re being brought in to talk about your industry as a whole. This passive promotional technique will allow for multiple ‘plugs’ during the conversation that lead potential clients and investors to your doorstep.
If you don’t have a publicist you will need one and during your initial ramp up you’ll want to have a targeted, localized and national audience using a minimum of 5 promotional combinations, this is crucial! Lastly, you are going to want to start blogging like a maniac. Blog and respond to any and every industry specific blog you can find. It is crucial that you carve out your position as an authority in the marketplace to tower like a beacon to future customers and investors.
Now you are ready to start talking to investors. The publicity used above will usually deliver a powerful enough promotion that will yield a steady flow of clients and potential investors and once word gets out that you’re company is solid and that you are offering equity investment opportunities…well the fundraising trail get’s easier and easier. You may also want to consider using an ‘investor finder’ at this point. An ‘investor finder’ is an individual or company that has substantial accredited investor contacts and will introduce you to those contacts for a flat fee. They are not a market maker nor are they a broker dealer. They are typically a broker of sorts that holds minimal securities licenses yet packs a punch with their ability to set you up with active investing contacts.
Raising capital is actually extremely easy if you set your company up in a way that is conducive to investment.
Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Tags: 504, 505, 506, Communications, investor finder service, investor finder services, james scott, offering memorandum, ppm, ppm offering, Princeton corporate solutions, princetoncorporatesolutions.com, private placement memorandum, reg d, regulation d
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Sunday, December 6th, 2009
Entrepreneurs are being turned onto Regulation D in droves. Regulation D Rule 504, 505 and 506 allow companies a more lenient fund raising process than those who choose to go public by other means. In the past year I’ve seen more PPM consultants pop up on the internet than ever before and I have to admit I’m concerned. As a veteran in this field I’ve seen it all, now we have a legion of self proclaimed Reg. D gurus who buy templates, add some text and tell their clients that they are delivering a customized offering memorandum; here’s where things go bad and a difficult situation gets even worse. You have this worthless document, now what?
You need to gain the confidence and capital of accredited investors without soliciting as dictated in Regulation D Rule 502c. Now you have a worthless document that you can’t solicit investment capital for (which your guru consultant never told you but took your cash anyway) so how are you suppose to raise funds for your company? First, you’ll find that you’ll eventually need to make your way to an actual PPM author, not a broker so that you can get a PPM that protects you from lawsuits and gives the investor a real breakdown of the upside and downside of your business.
Next you’ll need to find a “Investor Finder”, yes this is an actual term for an individual or corporate entity that is completely submerged in the accredited investor realm and is able to match your opportunity with friends that he/she has in their database of real, accredited investors. This is the second half of the PPM equation.
Don’t kid yourself and don’t allow yourself to be lied to; you’re going to need a seasoned professional to help introduce you to investors that have the capital to help you get to where you need to be. Friends, family and employees will commit to investing in your company until your PPM is completed and it’s time to make good on their commitment; all of a sudden little Johnny needs braces and Sally is in the hospital with pneumonia, this happens all the time. Now what? With a real Private Placement Memorandum and a solid Investor Finder you’re problems are basically over. Investigate where the author and I.F. stand in the Internet public domain and after you find a company that meets your needs, get moving and start raising capital.
The internet tells all when it comes to reputations, you’ll be able to tell the difference between a seasoned veteran and a startup consultant after on Google Search and a phone call. A PPM can make raising capital quick and easy if you have the right firm in your corner.
Want To Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Tags: 502c, 504, 505, 506, Communications, james scott, offering memorandum, ppm, ppm offering, Princeton corporate solutions, private placement memorandum, reg d, regulation d
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Friday, December 4th, 2009
If you’re trying to raise capital there are regulations set forth by the SEC to make sure everyone is conducting business ethically and in a way that can keep one accountable for their actions if fraud takes place. Regulation D Rule exemptions 504, 505 and 506 offer solid fundraising capabilities that can handle most investment needs. Companies typically hire a consulting firm to author these documents and within 30 days you’re off and running and talking to investors; that is, of course talking to investors while staying within the boundaries of Rule 502c which dictates the guidelines for solicitation which means no active promotion of the issuance of your securities.
This basically means that unless you have a bunch of millionaire friends, you’re no better off now than you were before the PPM was created. So, how does one raise capital in an environment which limits the promotion of your offering with such limitations? Easy, corporate publicity! You must have your timing right in order for this to work but here is basically what we do with our clients as we are writing their PPM and what you should do if you already have an Offering Memorandum written. First we make sure that they have a solid presence online, within their industry genre by getting them massive exposure virally using video, social and news bookmarks, press releases, unique article submission, image/photo marketing etc. This exposure is just for basic branding purposes and not advertising the investment opportunity.
This process will draw massive amounts of attention to their company while we use specifically researched tags that will cater to the internet user who is researching their industry and/or looking for this specific company’s position in the marketplace. The next thing that you’ll want to do is promote your company using traditional means such as radio, TV and articles written about your company and executives within the company. Now, these promotions are not ads, instead they are interviews and/or expert conversations where you’re being brought in to talk about your industry as a whole. This passive promotional technique will allow for multiple ‘plugs’ during the conversation that lead potential clients and investors to your doorstep.
If you don’t have a publicist you will need one and during your initial ramp up you’ll want to have a targeted, localized and national audience using a minimum of 5 promotional combinations, this is crucial! Lastly, you are going to want to start blogging like a maniac. Blog and respond to any and every industry specific blog you can find. It is crucial that you carve out your position as an authority in the marketplace to tower like a beacon to future customers and investors.
Now you are ready to start talking to investors. The publicity used above will usually deliver a powerful enough promotion that will yield a steady flow of clients and potential investors and once word gets out that you’re company is solid and that you are offering equity investment opportunities…well the fundraising trail get’s easier and easier. You may also want to consider using an ‘investor finder’ at this point. An ‘investor finder’ is an individual or company that has substantial accredited investor contacts and will introduce you to those contacts for a flat fee. They are not a market maker nor are they a broker dealer. They are typically a broker of sorts that holds minimal securities licenses yet packs a punch with their ability to set you up with active investing contacts.
Raising capital is actually extremely easy if you set your company up in a way that is conducive to investment.
Want To Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Tags: 502c, 504, 505, 506, Communications, james scott, offering memorandum, ppm, ppm offering, Princeton corporate solutions, private placement memorandum, reg d, regulation d
Posted in Communications | No Comments »
Wednesday, December 2nd, 2009
If you’re trying to raise capital there are regulations set forth by the SEC to make sure everyone is conducting business ethically and in a way that can keep one accountable for their actions if fraud takes place. Regulation D Rule exemptions 504, 505 and 506 offer solid fundraising capabilities that can handle most investment needs. Companies typically hire a consulting firm to author these documents and within 30 days you’re off and running and talking to investors; that is, of course talking to investors while staying within the boundaries of Rule 502c which dictates the guidelines for solicitation which means no active promotion of the issuance of your securities.
This basically means that unless you have a bunch of millionaire friends, you’re no better off now than you were before the PPM was created. So, how does one raise capital in an environment which limits the promotion of your offering with such limitations? Easy, corporate publicity! You must have your timing right in order for this to work but here is basically what we do with our clients as we are writing their PPM and what you should do if you already have an Offering Memorandum written. First we make sure that they have a solid presence online, within their industry genre by getting them massive exposure virally using video, social and news bookmarks, press releases, unique article submission, image/photo marketing etc. This exposure is just for basic branding purposes and not advertising the investment opportunity.
This process will draw massive amounts of attention to their company while we use specifically researched tags that will cater to the internet user who is researching their industry and/or looking for this specific company’s position in the marketplace. The next thing that you’ll want to do is promote your company using traditional means such as radio, TV and articles written about your company and executives within the company. Now, these promotions are not ads, instead they are interviews and/or expert conversations where you’re being brought in to talk about your industry as a whole. This passive promotional technique will allow for multiple ‘plugs’ during the conversation that lead potential clients and investors to your doorstep.
If you don’t have a publicist you will need one and during your initial ramp up you’ll want to have a targeted, localized and national audience using a minimum of 5 promotional combinations, this is crucial! Lastly, you are going to want to start blogging like a maniac. Blog and respond to any and every industry specific blog you can find. It is crucial that you carve out your position as an authority in the marketplace to tower like a beacon to future customers and investors.
Now you are ready to start talking to investors. The publicity used above will usually deliver a powerful enough promotion that will yield a steady flow of clients and potential investors and once word gets out that you’re company is solid and that you are offering equity investment opportunities…well the fundraising trail get’s easier and easier. You may also want to consider using an ‘investor finder’ at this point. An ‘investor finder’ is an individual or company that has substantial accredited investor contacts and will introduce you to those contacts for a flat fee. They are not a market maker nor are they a broker dealer. They are typically a broker of sorts that holds minimal securities licenses yet packs a punch with their ability to set you up with active investing contacts.
Raising capital is actually extremely easy if you set your company up in a way that is conducive to investment.
Want To Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Tags: 502c, 504, 505, 506, Communications, james scott, offering memorandum, ppm, ppm offering, Princeton corporate solutions, private placement memorandum, reg d, regulation d
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Tuesday, December 1st, 2009
This article is nine years in the making. The concept is so simple but 99% of the clients I consult with have made identical errors in their effort to raise capital. They will have a business plan and they will have a Private Placement Memorandum and after one read of these two documents I have to deliver the bad news, “Sorry, but your business plan and PPM are completely worthless”.
They will then proceed to give me a story where the one consistent theme usually goes like this, “That can’t be…there was a guy…..he gave us a great deal on our business plan besides he wrote the business plans for my brothers sock sewing company and my friends underwater basket weaving video business and he really seemed to know what he was doing and then we bought a template online and just took the content from the business plan and used it to fill out the PPM template…blah..blah..blah…”.
Look, before you have a business plan written, test the author’s knowledge on your specific industry genre. There is no such thing as a one stop shop for business plans, the good consultants will cater to certain industries. Find an author with a solid comprehension of your goals and can translate your ideas into the fickle, skeptical language of the investors reading it.
Your business plan should include, at a minimum, financial projections/assumptions, growth and development analysis, market analysis, research analysis and implementation, competition analysis, management summary, marketing plan, risk analysis, capitalization analysis, market penetration analysis and SWOT analysis. Without these crucial elements your business plan is dead in the water and so is your future in fund-raising.
Next, never… and I mean never buy a PPM template on the internet. There are certain aspects to your offering circular that can trigger the invest button or snooze button in the mind of investors. Your business plan’s job is to ’sell’ while the PPM is meant to spell out risk and other technical information that isn’t present in the business plan. The last thing you want to do is simply cut and paste information from the business plan over to the Offering Memorandum; it’s unprofessional and immediately loses legitimacy in the eyes of credible investors. Find a professional consultant, accountant or attorney who specializes in Regulation D to write your Offering Memorandum for you. A poorly written Private Placement Memo can destroy your ability to raise capital so fast it will shock you but a well written, professional PPM will make raising capital fast and easy.
Want To Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Tags: 502c, 504, 505, Communications, offering memorandum, ppm, ppm offering, private placement memorandum, reg d, regulation d
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Monday, November 30th, 2009
Banks and hedge funds have dried up. Scams like shelf corporations and platform based funding are on the rise so where can an entrepreneur turn to raise capital? It’s sad to be faced with the reality that legitimate fund raising methods have fallen into a minority position in today’s depressed economy.
Company owners still need expansion capital, start-up companies need seed capital, how can the owners of these companies bypass the learning curve set in place by the online scammers and find the legitimate ways of raising capital? There are two solid ways of raising capital that are supported by the SEC and can have you raising capital without the drawbacks of dealing with people that just want to take your money and run, Private Placement Memorandums and OTCBB.
First, Private Placement Memorandums allow the business to raise capital under the umbrella of three Regulation D rule exemptions: 504, 505 and 506. Also referred to as a PPM or Offering Memorandum, a Private Placement Memorandum allows you to raise capital, legitimately with an SEC supported and approve process that uses the laws pivoting off of the’33 Securities Act that helps entrepreneurs raise capital legitimately and safely. All are protected with a well written PPM.
If you’re looking to raise capital in more of a ‘public’ setting, check out the almighty OTCBB (over the counter bulletin boards), be careful on this one, there are several consultants and broker dealers that will take your money and walk away while you stand there with an entity that is, umwell, worthless. For an otcbb to be successful you need the back end support and ongoing consulting assistance of people that are completely submerged in the industry and know their way around so they can guide you around the trouble makers and into a world of massive corporate growth and funding nirvana.
If you are seeking true, honest, fast acting funding solutions the private placement memorandum and the OTCBB are your safest bet. Steer clear from the bogus formations such as shelf corps and platform and leased instrument based funding, they will only result in losing time and hard earned cash for your company.
Want to find out more about Private Placement Memorandums, then call Princeton Corporate Solutions at 267-233-0183. Find out about site on how to choose the best OTCBB Today!
Tags: Communications, how to take your company public, james scott, otcbb, ppm, Princeton corporate solutions, private placement memorandum, take your company public
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Tuesday, November 24th, 2009
When raising money, usually investors will demand their equity distribution in an SEC approved format like a Private Placement Memorandum, also known as a PPM or offering memorandum. This structure makes use of one of the three Regulation D exemptions stemming from the Securities Act of’33.
The three common exemption rules are Regulation D (Reg D) Rule 504, Rule 505 and Rule 506. These rules carry multiple criteria that assist businesses in raising equity or debt funding without all the stringent legalities of an IPO. These rules are defined like this: Rule 506 provides an exemption for limited offers and sales without regard to the dollar amount of the offering.
This exemption doesn’t limit the number of accredited investors, but the number of non-accredited investors may not exceed 35 investors. (An accredited investor is any one investor with a certain net worth and or experience in the purchase of stocks.) All non-accredited purchasers, either alone or together with a designated representative must be sophisticated enough (meaning, have the knowledge and experience necessary) to evaluate the merits and risks of the investment. (An offering company will usually determines the sophistication of its investors with a questionnaire subscription agreement.)
Rule 506 requires very detailed disclosure of all relevant information to potential investors; the extent of disclosure depends on the dollar size of the offering. Rule 505 offerings may not exceed $5 million, less the total dollar amount of securities sold during the preceding 12 month period under Rule 504, Rule 505 or Section 3 of the act. This exemption limits the number of non-accredited investors to 35 but has no investor sophistication standards. Rule 505 requires disclosure similar to that required for Rule 506 offerings, under $7.5 million.
Regulation D Rule 504 offerings allow a company to raise a maximum of $1 million in funding, less the total dollar amount of securities sold during the preceding 12 month period, under Rule 504, Rule 505 or Section 3 of the act. However, a business can raise only $500,000 by the sale of securities to persons residing in the states of Montana and Alaska, which have no disclosure laws applicable to the offering. For states that do have disclosure laws, which are 48 out of the 50 states, a business can raise up to $1,000,000. Rule 504 has no prescribed disclosure requirements, no limit on the number of purchasers, and no investor sophistication standards. So if you’re trying to raise capital using a Private Placement Memorandum, use the above criteria as a cliff-note and as long as you stay within SEC guidelines, fund raising for your company will be simple.
Call 267-233-0183, Private Placement Memorandum Services, visit Princeton Corporate Solutions to get more info about Private Placement Memorandums and passing Due Diligence
Tags: Communications, go public, ipo, james scott, otcbb, pink sheets, ppm, Princeton corporate solutions, private placement memorandum, take your company public, taking your business public, taking your company public
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Tuesday, November 24th, 2009
Real estate investors are constantly on the lookout for innovative ways to raise the capital needed to get the job done. Lack of funds to the real estate investor or rehabber is like an asthmatic without an inhaler, it’s a near impossible existence.
Access to cash is king for the investor and sadly this need is often like the scent of blood to the wolves as hard money lenders and greedy cash rich investors will lend to the real estate investor for such a high interest rate, the real estate investor’s profits evaporate before they can materialize. It’s a depressing reality to be faced with when months of hard work in bird dogging and going through the ups and downs of purchasing a property with decent profit margins results in actually owing money at the end of the transaction.
With all this said, there is good news. Imagine the ability to raise massive amounts of capital without dealing with the red tape of banks or the greed of hard money lenders. This solution is so powerful that it can transform your real estate investing business overnight. This process allows you to raise unlimited amounts of capital fast and easy.
This process is a Real Estate Private Placement Memorandum which is a PPM engineered to cater to the needs of a real estate investment firm while simultaneously helping the investor raise capital within the guidelines set forth by the SEC. There are few other structures available that can help one raise capital in such a rapid and streamline manner.
If you are involved in any level of real estate rehabbing or investing look into getting set up with a real estate private placement memorandum to put your business on steroids. It is easy to raise capital for these structures and will help you grow your business as large as you want it, quickly!
Want to find out more about Real Estate Private Placement Memorandums, then visit Princeton Corporate Solutions site on how to choose the best PPM for your needs.
Tags: Communications, go public, how to go public, how to take your company public, james scott, otcbb, pink sheets, Princeton corporate solutions, private placement memorandum, reverse merger, take company public, take your company public, why go public
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