How soon will I receive my Template Package?After completing the order form, you will receive the template right after completing the order form.
What is included in the Template package?The Template package includes all sections, documents, paperwork and filing information you will need. When you have completed filling in the blanks with the information that applies to your business, you will be ready to deliver the document package to your prospective investors.
Included are : An overview that offers guides to completing the documents
An Investor Subscription Agreement
This is the actual sales contract that the investor signs to subscribe to your offering. The Investor fills in the blanks for the amount he/she intends to purchase, signs the agreement and sends it to you with his/her check.
An Investor Questionnaire
This is the set of forms that the investors fill out with certain financial data to qualify them as an accredited or non-accredited investors.
This is the actual Regulation D Private Placement Memorandum (PPM) offering document that you complete and send to your prospective investors. It includes all the information about your offering, investment terms, your company, your management, use of proceeds, financials, and the SEC legends and disclosures required to comply with the regulations. An overview of the Table of Contents can be found below.
Debt or Bond offering will include the necessary Promissory Note.
How do I know which Form to order?
The order page assists you in determining the proper Template to fit your individual situation. It includes examples of the various Template types and you simply address the following three main choices:
# 1 – Determine if you will be a Corporation or a Limited Liability Company
- Corporation = PPMs for Corporations
- Limited Liability Company = LLC
# 2 – Determine investor method
- Selling stock = Equity
- Have a loan/bond debenture = Debt
# 3 – Determine how much money you need
- Up to $1 million = 504
- Up to $5 million = 505
- Any amount = 506
What type of companies need PPMs?
After completing the order form, you will receive the template right after completing the order form.
All types, there are no exceptions! From mom and pop retail stores to multi-million dollar super-sophisticated high-tech projects and including all types of real estate deals. Size of the project and type of industry make no difference. The important point is to comply with the security rules and regulations and to present a concise, structured set of professional disclosure documents.
Do I really need a PPM offering document?
The primary reason for having a Private Placement Memorandum is that the PPM offering document satisfies the legal issues and rules and regulations for raising capital as well as providing you with a sophisticated and professional way to present your project to prospective investors. If you sell securities improperly, or do not make the proper disclosures, you could face fines and rescission (give the money back), as well as lawsuits from investors or regulatory bodies. By having a PPM, you are complying with the state and federal rules and regulations for selling securities (debt or equity) when raising capital. This includes deals from $100,000 to multi-millions. When you use a Reg D offering memorandum, you limit the liability exposure for the initial owners and directors of the company. The PPM also ensures that you are treating all investors equally. It eliminates the “he said-she said” discussion since all investors are treated equally and sign off on the information that is presented in the offering memorandum.
Do I need a Private Placement Memorandum for a start-up?
You may not have much in assets or any revenues, however, this is the ideal time to have a Memorandum. A large number of early-stage companies use PPMs to raise their initial capital. Reg D financial rules do not require you to have a lot of assets and there are no minimums, in fact, many companies have losses and negative net worth. Remember, Regulation D Private Placements are disclosure documents and as long as you disclose your financial conditions, you are complying with the regulations. The investors make the investment choice knowing all the facts about the project, including financial conditions, prior to making their investment. While banks are reluctant to lend to start-ups, private investors like early-stage deals where they have the opportunity to obtain substantial returns.
Will my document conform to all regulations?Your Template Package guides you through all the necessary rules and regulations and tells you what information you need to furnish. This is a very comprehensive Template and you can pick and choose among many different clauses to fit your particular situation. The Template has been developed over 10 years to make it as simple as possible for you to conform it to your business.
What else will I have to do after filing in the information in the Document Template?
You will have to file what is known as a “Form D” after your first sale of securities. Form D is a brief four-page notice that includes the names and addresses of the company’s owners and stock promoters, and brief financial information on the company offering. A copy of Form D with complete instructions is included in the Package. There is no cost for filing the Form D.
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