Idaho Securities and Private Placement Memorandum Attorney
Start up companies or established companies in need of additional capital may desire to raise money through the issuance of unregistered private securities. The Securities Act of 1933 and Regulation D of the Securities and Exchange Commission permits the selling of unregistered securities to specific investors only under certain circumstances. The offering can be made by means of a private placement memorandum offering, drafted by a securities attorney, which explains the offering and the risks.The offering must meet the requirements of the Securities Act of 1933 and/or 1934 and/or the three rules of Regulation D (Rule 504, 505 and 506), describing the specific exemptions permitted.
While the private placement does not need to be registered, the memorandum still must comply with the anti-fraud requirements of the federal Securities Act and any state securities statutes or regulations that may apply (known as Blue Sky laws). Given the potential complexity and length (the private placement memorandum may run 25 to 75 pages) you want a knowledgeable securities lawyer reviewing your offering and drafting the private placement memorandum.