A private placement memorandum (PPM) is the securities disclosure document that provides investors with material information about the company to enable an investor to make an informed investment decision.
Similar to a prospectus in a public offering, the PPM provides potential investors with accurate information about the terms of the investment, the structure of the company and the background of the principals. The private placement memorandum contains risk factors that an investor should consider before making an investment.
Casson Media Group Funding Services develops a Private Placement Memorandum using the information and the data provided by the client. The PPM is usually between 25 to 40 pages depending upon the amount of relevant information that needs to be included. The PPM can be viewed online or downloaded from the secure site provided to the client by 506(c) Funding Services.
Strictly speaking, a PPM is not required when selling to only accredited investors according to Reg D 506(c). Most issuers elect to provide a PPM for a variety of reasons. First, the SEC openly warns prospective investors that the absence of a PPM is a red flag; second, to do a full and transparent disclosure is often required by a broad range of both institutional and individual investors. Finally, the PPM provides the issuing company some litigation protection from potential future stockholder claims that they were not given a complete or accurate picture of the facts at the time they made their investment decision.
If a client company has already prepared their PPM, Casson Media Group Funding Services can review and revise the documents as required. Also, the docs will be formatted to be displayed securely online. If the documents that are provided are acceptable, Casson Media Group Funding Services will reduce the investment marketing fees accordingly.