Is it possible that transactions on SharesPost might complicate the company’s private placement for a raise of primary capital or initial public offering?
Companies that opt in to the SharesPost platform are able to “freeze” secondary transactions on the SharesPost bulletin board in advance of conducting a private placement or initial public offering. This means that prices revealed in connection with secondary transactions are never in conflict with the company’s own fund raising efforts. Even better, qualifying SharesPost members that come to the company’s bulletin board interested in acquiring shares in a secondary transaction can, at the company’s election, be directed to the company’s financial advisor as a potential investor in the company’s private placement.
