Prospectus for a Public Company

Prospectus for a Public Company

Prospectus.com team has written, edited or assisted with hundreds of prospectuses for public companies worldwide. Equity and debt offerings (i.e. stock offerings and bond offerings or notes) are a popular method to raise capital and indeed the most companies use one of these methods to procure financing publicly. Any company raising public money must write a prospectus, otherwise it will be difficult to raise money let alone be listed on a stock exchange.

A prospectus will outline the terms of the debt securities offering. For example, if the company is selling notes or bonds, the prospectus will detail the terms of the offering such as the interest rate and maturity date, payment and coupon dates, convertible bond or convertible note dates and terms, and many other factors. Thus, the writing of a circular can assist in expediting the capital raising process.

Public Company – Prospectus Writing Assistance

For the securities to be exempted from registration via a offering the prospectus must detail many features. Here are a few:

  • The¬†prospectus must give details of the securities being offered for sale to investors;
  • Like in any well prepared and written prospectus the management team of the company must be detailed;
  • Additional material regarding the bond securities being offered must be shown as well (if other than common stock); and
  • Finally, financial projections or financial statements must be included in the prospectus. In most cases, they will need to be certified by an independent accountant.

Private Placement Prospectus

Prospectus offerings of a company is often used in the private placement market to raise capital. The most common form of any document used to raise capital in the debt sphere, for example, is under 144A and Reg S. Such a company’s prospectus will detail the private placement terms. Private placements of 144A are both conducted for equity and debt offerings. Equity placements often use Reg D.

Regulation D

Reg D, or Regulation D, is probably the most popular method to raise capital in the United States. While the offerings themselves may not reach the dollar amount of a 144A or Reg S, it is the most chosen regulatory rule to raise capital under.

Public Placement of 144A & Reg S

Often companies that are listed publicly may initiate a private offering under rule 144A and Regulation S (Reg S) to raise capital debt capital by selling securities such as bonds.

Prospectus for Companies Worldwide

For issuers considering selling Prospectus, to investors a well-tailored and written Information Circular is mandatory, particularly for those seeking US investors. A Information Circular offering document can add value to your offering by showing investors you are serious about raising money. In addition, it is essentially a requirement for any issuer that wants to raise debt or equity capital to hand investors a prospectus. The Information Circular will educate the investors and allow them to decide if the offer merits deeper thought or an investment. The document itself should tell the company story, both the product offerings and the securities being offered in detail, including the team behind the company, the terms of the securities, rules such as 144A/Reg S and more. Attached to any Information Circular is the subscription agreement, which is the ‚Äúcontract‚ÄĚ between the issuer and the investor. Once signed the investor would then send in his/her money for the securities.

The Information Circular should be viewed by the issuer as an opportunity not to be wasted. In other words, the prospectus is the story of the company and will be the single most important document used to raise capital from investors. Without such a formal document, it is unlikely a company will raise capital, let alone be taken seriously by those that invest in debt securities.

What Prospectus.com Can Do

For startups or established companies or funds seeking to raise capital via a formal debt securities offering, securities regulators worldwide, as well as investors in a private offering require the Issuer to submit a professional preliminary red herring prospectus Information Circular offering document. The Prospectus.com team of consultants and attorneys can assist with the writing and drafting of your prospectus for financing and other securities offering documents. Whether you are conducting a private or public offering for debt or equity issuance, our team can ensure that your prospectus is structured to conform with both local regulatory and global standards to maximize success during your capital formation needs. The Prospectus.com team of consultants and attorneys can assist with the writing and drafting of your company’s red herring preliminary prospectus or other offering documents. Whether you are conducting a private or public offering for debt or equity issuance, our team can ensure that your prospectus is structured to maximize success.

Here are the (7) basic steps regarding our process:

  1. Prospectus.com team conducts the initial analysis of your company.
  2. We will recommend the best course of action, taking into consideration time frame, budgets and overall needs.
  3. We undertake all work and begin the process. This would include the drafting of the prospectus or any other document such as the offering memorandum, or legal agreements from our attorneys.
  4. We send the documents to you for review.
  5. Once approved, and if you need, an attorney opinion letter can be included in the paperwork.
  6. If you require filing or registration with various agencies we will undertake as well.
  7. We are a start-to-finish firm and our number one goal is the successful growth of our clients.

Prospectus.com can assist with your Information Circular campaign as well as with your debt financing private placement needs. We are the world leading firm that specializes in public and private prospectus writing and general business and legal document writing services.

Our team at Prospectus.com has years of experience writing prospectuses for hundreds of varying industries and businesses and writing their Prospectus. We work one on one with our clients during the Information Circular drafting process and take it upon ourselves ‚Äď in almost obligatory fashion ‚Äst to assist our clients with their quest for growth once our services our complete.

If you are considering raising capital and the offering memorandum prospectus Information Circular written feel free to reach out to us.

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