Private placement vs prospectus offerIng

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LookinGIntoIt

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Private placement vs prospectus offerIng

posted on Apr 21, 2019 09:31AM

Gents,

Just chiming in to share some light regarding the « accredited investor » topic.

When an issuer choose to tap the market by making an offering of securities (shares, debentures, etc) it can elect to do so with or without a prospectus.

When it choose to not issue a prospectus under the 43-101 national instrument, it will be refered as a PP or private placement which is where the accredited investor criteria will kick in. This form of offering is convenient and often less costly for the issuer (less paperwork, legal costs, etc).

When the issuer goes public in lieu of PP, it will have to issue a full prospectus as Poet did (based on some poster comments) and therefore not only accredited investors but also the public will be allowed to invest based on the information provided within the prospectus.

To participate to Poet’s offering an investor has to contact IBK and follow the process (IBK should guide you).

Disclosure I didn’t participate in the debenture offering and I am no specialist of security offering aka security lawyer.