private-placement-memorandum

name	private-placement-memorandum
title	Private Placement Memorandum (PPM)
description	Drafts U.S. Regulation D Private Placement Memoranda (PPMs) with required legends, risk factors, capitalization, securities terms, and subscription procedures. Trigger when drafting a PPM, preparing a Reg D (506(b) or 506(c)) offering, building accredited-investor disclosure, or structuring private placement documents to minimize 10b-5 liability.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/private-placement-memorandum
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	capital-markets
language	en
tags	["corporate","drafting","memo","regulatory","transactional"]

Private Placement Memorandum (PPM)

Draft a Regulation D-compliant PPM delivering full-and-fair disclosure with a defensible liability record.

Quick Start

Collect before drafting:

1. Issuer profile — legal name, formation state/date, addresses, prior names/reorgs.
2. Offering terms — security type, price/valuation, min/max raise, use of proceeds, timeline, escrow.
3. Cap table — authorized/outstanding classes, options/warrants/convertibles, major holders.
4. Financials — historical statements, burn, runway, audit status.
5. Business materials — deck, plan, key contracts, IP, regulatory posture.
6. Management bios — roles, tenure, relevant history.
7. Compliance inputs — 506(b) vs 506(c), investor eligibility plan, blue sky scope.

Core Workflow

1. Determine Exemption

Factor	506(b)	506(c)
General solicitation	Prohibited	Permitted
Investors	Accredited + ≤35 sophisticated non-accredited	Accredited only
Verification	Reasonable belief	Reasonable steps to verify
Disclosure	Enhanced if non-accredited present	Accredited-only package

Record the exemption choice and its disclosure implications in the PPM.

2. Intake & Gap Log

Audit available documents against required inputs:

• Governing docs (charter, bylaws/operating agreement, investor rights, ROFR/co-sale)
• Security terms (dividend/interest, liquidation, conversion, voting, protective provisions)
• Material contracts (top customers/suppliers, IP licenses, debt)
• Litigation/regulatory (claims, investigations, sanctions)
• Financials (last 2–3 years or since inception; audited vs unaudited)

Track gaps in a single table:

Section	Missing Data	Source	Owner	Deadline

3. Cover Page + Legends

Required elements:

• Issuer name, security type, max amount, date
• Confidentiality legend — restrict distribution; require return/destroy