Private placements are offerings by companies that are not generally available to the general public. Accredited investors are able to purchase shares directly from the company often to help finance expansion or further exploration. These shares are normally subject to a four-month hold restriction, after which they may be sold on a recognized stock exchange.
Another key benefit of private placements is warrants. Warrants allow shareholders to acquire shares in the issuing company at a set price for a predetermined period of time. For example, an investor may buy shares in a private placement at $0.50 per share, and receive a warrant allowing the investor to purchase an additional share for $0.75 at any time during the next 24-months. If the shares rise to $1.50 on the open market, the investor still has the ability to purchase shares for $0.75. If the share price fell, or failed to reach the $0.75 level, the warrant would expire worthless.
Mergers & Acquisitions
When searching for a merger partner, or considering an acquisition, identifying the best prospects become crucial considerations for any company. NCL can help guide your firm through the process, and offer valuable consulting services.
The goal of any merger or acquisition is to enhance shareholder value by establishing the right synergistic relationships with the partnering company. NCL works closely with firms helping them identify the best strategies to make mergers and acquisitions flow smoothly.
Meeting a companies capital requirements can be a daunting task. Should the company simply issue more shares, engage in debt financing, maybe preferred shares or even convertible securities? All companies need to consider all available options and choose the one that best meets their financing needs.
NCL will conduct a comprehensive needs assessment, study all available options, and present you the best solutions for your company's needs.
Private placement investments are standard equity investments made with companies that have the potential to provide investors with favorable returns over other instruments of comparable risk. NCL clients have access to several well researched firms that may be suitable for some of our client's portfolios.
At NCL we carefully assess each opportunity presented to our clients with the view and spirit to minimize risk. We also take the time to understand each client's individual circumstances to allow us to tailor our recommendations based on each client's needs and objectives.
For certain projects meeting specific criteria, NCL may make a direct investment into the firm. In order to qualify, companies must meet our guidelines which cover industry sector, type of business, potential growth, management commitment and several other criteria. If you would like to know more, we invite you to contact us.
- Investment Banking
- Mergers & Acquisitions
- Market Awareness
- Dominic Spedaliere LL.B.
- Upul Welimahara Arunajith
- Ari Todd
- David Solomonov
- Aaron Sonshine LL.B. - Legal Council