Private
Placements
What Should Be In a Rule 506 Private Placement Offering
 A
private placement should be drafted to protect the company, its
officers and directors, as well as investors. This means, at
a minimum, for a Reg D, 506 private placement letter offering
("PPM") to Accredited Investors should include the following
provisions:
- Appropriate
securities disclosure language;
- Summary
of the business, its officers and directors (supplied by company);
- Summary
of the offering (price per share, total number of shares being
sold, how many shares per unit and the unit price);
- Purchaser
questionnaire;
- Purchaser
subscription agreement;
- Personal
Representative Disclosure Statement;
- Personal
Representative Questionnaire;
- Financial
Projections (to be supplied by company-not required but may
be included);
- Financial
Statements(to be supplied by company-not required but may be
included).
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