KJK understands that a private placement of your company’s securities is often the best choice for you to raise capital or expand your business. Although private placements are not registered with the SEC, they are subject to specific restrictions—including who you can and cannot sell to—and you still must provide certain information to potential investors and the SEC. We can help guide you through the process of preparing for and documenting a private placement offering, registering the offering with federal and state regulators, and finding placement agents to sell your securities. From start to finish, KJK’s experienced attorneys make sure that you can accomplish your goals in compliance with the law.

Financing in line with Your Goals & Values:

Why Private Placements Work For You

Private placements are ideal for those who want to diversify their financing sources while continuing to enjoy privacy and control over their business. In addition to being faster and less expensive than public offerings, private placements help preserve the value of your shares because of restrictions on who can buy them and when they can be sold. At KJK, we help you secure financing in line with your goals and values. Private placements handled by our attorneys ensure lower costs, greater flexibility, and faster financing than public debt or other bank debt options.

Understanding the Nuances:

Private Placements Under Rule 506(b) and 506(c)

Our skilled lawyers have significant experience with private placements under Rule 506(b) and Rule 506(c), the two main types of private placement offerings. Under Rule 506(c), you may issue securities to only accredited investors, such as banks, registered broker-dealers, high net worth individuals, or your business’s directors, executive officers, and general partners. Under Rule 506(b), securities may be offered to both accredited investors and a limited number of non-accredited investors. For placements under 506(b), additional information must be given to non-accredited investors. Also, unlike with 506(c) placements, you cannot engage in any general solicitation or advertising. Knowing the nuances of these rules is critical to growing your business.

We’re Here To Help:

Contact KJK Today about your Private Placement Needs

Private placements can help you achieve your company’s long-term financial goals while ensuring you control and flexibility. KJK’s attorneys have years of experience representing both private and publicly traded companies in issuing securities. To learn more about what the Private Placement attorneys at KJK can do for your business, call us to schedule a consultation.

Representative Experience

KJK’s attorneys have handled a wide variety of private placements to help accomplish their clients’ unique goals. Their experience runs the gamut from start-ups seeking financing to established, publicly traded companies acquiring new assets. KJK’s successes include:

  • Represented a publicly traded biopharmaceutical company in raising funds through the private placement of securities under Rule 506(b). With these new monies, our client was able to fund the FDA approval process for its newly developed immunotherapies for brain tumor patients.
  • Raised millions of dollars under Rule 506(b) and 506(c) for real-estate oriented investments across the country, including hotels, apartment buildings, office facilities, and self-storage properties. These private placements included issuing both equity and debt.
  • Offered preferred shares under Rule 506(b) for a publicly traded natural gas utility to fund the buy-out of a joint partnership interest.
  • Represented a waste-plastic conversion company in multiple rounds of financing. KJK’s attorneys later represented this company in its sale to a strategic acquirer.
  • Assisted a publicly traded industrial company in multiple private placements to raise capital for operations and to fund acquisitions of additional portfolio companies.
  • Represented a cloud-based software company in multiple rounds of equity and convertible debt to fund ongoing operations.
  • Offered pre-seed and seed rounds of convertible notes to benefit a start-up software company, which was ultimately sold to a strategic acquirer.
  • Orchestrated private placements to form equity funds and to assist private equity funds and independent sponsors to fund portfolio company acquisitions.
  • Represented placement agents that assisted in the offering of securities by both public and private companies.