If you are reading this page, you are probably a business owner that is thinking about the possibility of getting investors into your company. That’s great. That means you are growing and moving forward; you have long term goals and now you need the capital to reach those goals.
We want to help you. We focus on small and medium sized businesses and find solutions for their capital needs. Most importantly, we help entrepreneurs stay within the law when it comes to selling securities. Nothing can wreak havoc on your company’s operations like a cease and desist letter or subpoena from the Securities Exchange Commission or a state securities regulatory agency. Avoid these types of inquiries and stop them dead in their tracks by making sure you are legally compliant when it comes to your securities filings.
Looking to Raise Capital?
Even if you have no idea what you need (or what you even want), we will walk you through the process, offer suggestions and show you the different alternatives that you have when it comes to raising capital. For your edification, below are a couple of the different types of documents we will draft for you:
Private Placement Memorandum: if you are looking to stay private, not use any form of general solicitation and want to sell stock in your company, units in your limited liability company, interests in your partnership, or simply unsecured notes, you can raise money using a private placement memorandum relying on the exemptions provided under Regulation D of the Securities Act of 1933.
Disclosure Document: Many of our clients are real estate investors looking for private lenders to lend on single family homes. Many times, the notes our clients sell are secured with a deed of trust or mortgage. There is a misconception that this is not the sale of a security, when in fact, it is. If you are real estate entrepreneur looking for private lenders, be sure that you have the proper disclosure document and exemptions available to do so. Every state is different when it comes to notes secured by real estate. Contact us and we can provide be sure that you are following the proper methods for raising money in your state.
Regulation A filing: A Regulation A filing allows a company to raise up to $5 million in a 12 month period using general solicitation without going public. That means the company does not need to provide audited financial statements or provide on going reporting requirements. Most law offices will not do these types of filings, and if they do, many law firms are extremely expensive as Regulation A filings can be an arduous task for an attorney. It’s just easier for a lawyer to push you into a different type of document even if a Regulation A filing may be the most appropriate for your company. We won’t do that. Not only have we successfully done Regulation A filings, we offer it to our clients as an alternative regularly. Furthermore, we provide this service at a reasonable price.
California Registered Offering: In the state of California (as in some other large states), there are some great in-state laws for raising capital. By submitting a California Registered offering (or “registration by permit”), a company can raise an unlimited amount of capital in the state of California under Section 25113. This is a great alternative for real estate companies that are conducting business mostly in California, will continue to conduct business in California, and will only have investors in California. This type of advertising allows the company to use general solicitation, or advertising, to raise money.
Public Offering: There are a lot of misconceptions about going public in the United States. In reality, it’s not that difficult if you are dealing with an attorney that knows what they are doing. It can also be affordable. We have brought multiple companies public including film, real estate, alternative energy, internet marketing, biotech, service, and food companies.
Real Estate Investment Trust: If you are a real estate that has been raising money and believe that you may end up with over 100 investors, a real estate investment trust may be the right alternative for you. There are a lot of rules when it comes to running a REIT, so be sure you have an attorney that knows those rules and can execute proper documents for you.
If you have any questions, be sure to fill out the form to the right. Our staff will quickly contact you to schedule a free phone consultation with our attorneys at your convenience.