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In today's capital markets, the use of private
placement offering memorandums as the basis for the sale of debt and
equity securities continues to dominate the capital markets. More
than half of all business capital funding is the result of private
placement offerings and the use of private placement offering
memorandums are the primary mechanism. If you are undertaking the
sale of real property interests (such as the case with TIC
plans) then the private placement offering process is the wrong venue
for your capital financing needs. You need to utilize a real
property sale contract process for real property interests.
The private placement offering memorandum (commonly referred to as a
"PPM") is a disclosure document used by issuers (like you) to
inform potential investors about the terms, risks and potential economic
benefits of participating in your company's securities offering. At
its core, the PPM exists to provide legal protection for the issuer from
claims (filed and unfiled) of investment fraud when things don't go right,
so the depth of disclosure is important. The more disclosures you
provide, the fewer issues there will likely be that can be the subject of
litigation. This means that you need the advice of legal counsel
that specializes in securities matters to advise you at each stage.
Developers and owner/operators of commercial real estate development
projects are the bread-and-butter of most offerings and Rainmaker provides
direct support at each stage. The key milestone stages of a private
placement are:
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Due diligence stage. This involves obtaining all of the
required due diligence documents that will support the offering.
RMC can help you understand what is required and what RMC can provide.
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Capital funding plan stage. The result of the due diligence
stage activities is culminated in the creation of the summary capital
funding plan disclosure that is the centerpiece of every issue.
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Referral stage. RMC can help you identify the investment
banking firm that is right for your particular issue, provide
presentations on the various aspects of the due diligence
documentation and the capital funding plan proposal.
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Solicitation cycle. RMC can provide in-depth presentations
to institutional investors regarding the structure of the issue.
We're right behind you at each meeting.
If you are seeking to capitalize your new project, then it makes
sense to at least talk with RMC. The first consultation is free, so
all you have to lose is an hour of your time.
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