Private Placement Offerings Attorneys Focused On Your Legal Needs
Our law firm has extensive experience nationwide with corporate finance law
Whether you are starting a new company or trying to grow an existing company, you need a strategy to raise capital. For many companies, a funding process known as a “private placement offering” is the best way to do so. Because a private placement offering is essentially an exemption from registration with the Securities and Exchange Commission (SEC), you should consult with an experienced corporate finance lawyer in order to make sure you are fully in compliance with the law. In Texas and throughout the country, business owners trust the Houston-based law firm of Brewer, Pritchard & Buckley, PC to assist with these offerings.
What are the benefits of a private placement offering financing option?
There are many benefits to financing your company or business venture through a private placement offering. Some of the key benefits of a private placement include:
- Lower transactional costs because you do not need to register with the SEC
- More freedom to structure the transaction because of the smaller number of investors
- Rapid penetration into the capital market as compared to a public offering
Again, a private placement offering is exempt from registration with the SEC. In order to quality for such an exemption, you need to qualify under very specific criteria. Both federal and state laws apply to these offerings. That’s why it’s so critical that you receive legal advice from an experienced private placement offering attorney.
What are common corporate financing exemptions?
Depending on your business needs, we may be able to pursue any of the following exemptions:
- Section 4(2), the broad “private offering” exemption
- Section 3(a)11), known as the “intrastate” exemption
- Regulation D, which contains three different exemptions:
- Rule 504: $1 million limit but can be opened to all investors.
- Rule 505: $5 million limit but limited to “accredited investors” and a limited number of non-accredited investors who have no restrictions.
- Rule 506: No dollar limit, limited to “accredited investors” and a limited number of non-accredited but “sophisticated” investors who must meet certain criteria.
The laws governing this corporate finance option are complex. Serious penalties exist for companies that run afoul of the SEC. That’s why it’s critical to consult with a private placement offering lawyer before you begin the process. Contact us today to learn more about how we can help raise capital for your business in a legal, efficient manner. Call 713-209-2950.