Are SAFEs Securities under Federal or California Securities Laws? The topic of are SAFEs securities under federal or California Securities Laws has been garnering attention in the legal, investment, and business startup worlds, with many questioning the status of SAFEs under established securities laws. Many legal experts agree that [...]
San Diego Private Securities Offerings and EDGAR If your company is seeking to raise operating capital, one option is to offer securities for sale. In simple terms, you sell shares of stock (although there are many forms of "securities"). In general, if your company is offering and selling securities, [...]
A good corporate lawyer will be able to read and review the private placement memorandum and provide some advice and counsel on various red flags that might be raised. Red flags are raised not only by what might be contained in the private placement memorandum, but by what might be missing.
What Constitutes a Material Misrepresentation in a Securities Offering? California Corporations Code Section 25401 provides: “It is unlawful for any person to offer or sell a security in this state, or to buy or offer to buy a security in this state, by means of any written or oral communication [...]
What is a Private Placement Memorandum? In order to raise capital, many small businesses seek investors through what are known as private placements. These “private placements” can offer limited partnership interests, common or preferred shares of stock in small corporations, bonds, or even notes. These offerings are generally exempt [...]
