Document background
The Confidential Private Placement Memorandum is a crucial document in Nigerian corporate finance, used when companies seek to raise capital through private placement of securities without public offering. It is governed by the Investment and Securities Act 2007 and SEC Rules, requiring specific disclosures while maintaining confidentiality. This document is typically used when companies want to target a select group of sophisticated investors, need to raise capital while avoiding public offering requirements, or seek strategic investors. It contains comprehensive information about the business, financials, risks, and investment terms, while ensuring compliance with Nigerian securities regulations. The memorandum serves both as a marketing document to attract potential investors and a legal document providing protection against future claims of inadequate disclosure.
