Rule 506(c) Private Placement Offering Costs

The change in the securities regulations brought on by the passage of the JOBS Act means companies seeking capital financing can undertake a registration-exempt securities private placement offering pursuant to the amended Rule 506(c) of the Securities Act of 1933 (as amended) with a much higher degree of success certainty because they can use the same security advertising and sales methods as companies that routinely launch IPOs.  This has created a capital financing “gold rush” as more than 7,000 companies have undertaken and completed offerings since the new rules went into effect.  The Rainmaker Capital Markets Program offers an end-to-end solution to help your company create and launch an “IPO out of the box” with the reasonable expectation the costs of issuance and time required to complete the offering will be a fraction of the IPO cost.

To help you better understand the nature of this opportunity, we utilizes the U.S. Securities & Exchange Commission (SEC) August 2018 report as the basis for providing a demonstration of the potential cost differences.  These differences are highlighted in the spreadsheet below for your review.

Rule 506(c) offering general solictation costs

That’s a pretty dramatic difference.  If you can appreciate the odds of success that comes with the ability to advertise your offering to potentially millions of prospective investors, then you will understand the odds are changed.  You don’t need our services to do this: you can do it all by yourself.  Granted, it will likely cost you more and take a whole lot more time (versus a 1.5% liquidity requirement and 60-day completion expectation).  The question you have to ask is what is your time and opportunity worth to you.  Do you want to control the lion’s-share of the upside in the deal you say is so worthwhile?

Nothing ventured, nothing gained…”  It’s not just a cliche, it’s a fact of business and life.  Call us today to start your grand adventure so that the odds may always be in your favor.