When selling your company's debt or equity securities you will use an offering disclosure document to inform investors about the pertinent details about the company and the offering. This document is the disclosure document, or as popularly known the "Private Placement Memorandum" or "PPM".
While the 504 program has no prescribed disclosure requirements, it is always recommended that you utilize an offering memorandum to assure proper disclosure of all pertinent corporate details. This disclosure document also protects the company and company principals because it informs investors of all the needed disclosure items before they invest.
The primary documents needed in a Regulation D Offering are:
- Private Placement Memorandum: The Private placement Memorandum, or "PPM", is the document that discloses all pertinent information to the investors about the company, proposed company operations, the transaction structure (whether you are selling equity ownership or raising debt financing from the investors), the terms of the investment (share price, note amounts, maturity dates, etc.), risks the investors may face, etc.
- Subscription Agreement: The Subscription Agreement sets forth these terms and conditions of the investment. It is the "sales contract" for purchasing the securities.
- Promissory Note: In debt offerings you need to have a Promissory Note outlining the terms of the loan arrangement with the investors. The note is the actual "loan document" between the company and the investor.
Document creation is one of the main steps to preparing a Regulation D Offering. Regulation D Resources provides all needed documentation for an offering - for specific details on the documents we provide see the Services section of the website.
