Private Placement Lawyer

PRIVATE PLACEMENT LAWYER

Raising investment capital by the sale of an equity stake in the company without soliciting the general public tends to be preferable to both the corporate founders, leadership and investors. For without the regulation, cost and excessive disclosure necessitated of publicly traded companies, the corporation tends to be better focused on pursuing its commercial objectives and undertake challenging innovations. Eventually, it might make sense to take the company public, nevertheless unless dictated by the demand for further capital, remaining privately held may well be the preferable course of action.

Raising investment capital by way of a private placement therefore serves as a central capitalization tool for growing companies. Private placements are undertaken to highly specific potential purchasers through the use of prospectus exemptions made available by the relevant securities regulation authority to issuers, selling securities holders and dealers. The private placement process for selling corporate securities is generally simpler and significantly less expensive than the prospectus offering utilized by publicly-traded companies.

The private placement approach is largely circumscribed to high net-worth individuals, corporate insiders and institutional investors, somewhat limiting the source of investment capital, however reflecting that those investors better recognize the risk associated with the particular investment without the issuance of a prospectus detail the scope and risk intrinsic to the investment, together with those investors' capacity to absorb the financial repurcussions of such risk. At the law firm of Neufeld Legal P.C., we advise and undertake the implementation of private placements with the aim of facilitating the capitalization of growing businesses that appropriately reward investors while seeking to address the risks associated with corporate investments.

For experienced legal advice and counsel with respect to private placements and the pursuit of investment capital for the expansion and development of growing Canadian businesses, contact the law firm of Neufeld Legal P.C. at 403-400-4092 or Chris@NeufeldLegal.com.