For entrepreneurs and emerging businesses, the inability to access capital frustrates commercialization of their business plan and may ultimately undermine achievement of any of the plan’s desired objectives. Conventional lenders shun entrepreneurs and impose onerous loan conditions on operating businesses that impede, rather than facilitate, loan closings. Private securities offerings (a/k/a private placements) conducted by business entities seeking to sell their securities to investors represent an alternative means of raising capital, and fill the void left by the lending community. Any private sale of a security implicates state and, possibly, federal securities laws and regulations. If properly structured and implemented, private securities offerings obviate the need to register the offered securities based on one or more exemptions from registration found in the applicable securities laws.
Detroit Securities & Private Placement Offerings Lawyers
Not surprisingly, state and federal laws tightly regulate private securities offerings and mandate strict compliance with their disclosure and investor requirements and conditions. Our seasoned securities attorneys represent issuers of all sizes and at varying stages of development, as well as investors exploring investment opportunities in start-ups and mature businesses.