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By Jason A. DeJean, CFO, PFP, EPC, CPCA
Private Placements: How can I find them and how do I get them?
So as an investor how do we take advantage of one of these offers:
1. The investor must decide how much they are willing to commit to the offer. Once you agree you are on the hook for the shares you’ve asked for.
2. An advisor must put in an expression of interest. Depending on the deal and the demand the offer could go quickly or take some time. Always best to get in in early. We may or may not get ALL the shares were looking for. Prepare to get less of popular issues.
3. Once the shares are given they must be allocated to the accounts quickly. This means all paperwork* (compliance) must be completed.
* Paperwork includes account opening paperwork as well as private placement paperwork.
As the adviser, my job is to determine suitability for the clients looking to invest.
1. Exemptions Qualification - Determine if the investors qualify to invest in exempt securities.
2. Know Your Client (KYC) – verify the essential facts about the client.
3. Know Your Product (KYP) – Learn the essential facts about the exempt product.
4. Suitability – Determine whether the exempt product is suitable for the client.
I’m creating a group email specifically people in Ontario looking to take advantage of these types of issues. Please forward me your email address so I can add you to the group. After I send out an issue I can then gauge interest from the response and confirm amounts you’d like to invest. Please send those emails to [email protected]. There is no obligation to participate and often the issuer pays the fees so there is no cost to the investor.
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