What is a Regulation D Private Placement Memorandum?
A Regulation D (Reg D) Private Placement Memorandum (PPM), or offering, is a document that discloses the primary information about a company for the prospective investors. It is written in a very negative way to give investors information about the company’s operations, the risks the investor assumes, the terms of the offering (for equity–price per share, number of shares offered and outstanding, and for debt–note amounts, maturity, interest rates) along with a great deal of legal caveats to comply with both Federal SEC and states securities disclosure. These, among other details, are not found in a business plan and the use of a PPM offers a form of liability protection for entrepreneurs. Our private placement program includes a “Subscription Agreement” which is the sales contract that the Investor signs for purchasing your securities, and an “Investor Questionnaire” which the investor completes that declares their investment status.
