Copy Countersign Arrangement with airSlate SignNow

Copy countersign arrangement

hi Darren Mangum again I just wanted to post another video again this is a series of videos that I post just with common questions that I get from my clients on a regular basis oftentimes after we've drafted the PPM and giving you all of the documents again everything in PDF format so that you can either distribute that electronically or or printed however you're going to distribute it to the investors and that's an important thing we can cover in another video but a lot of times I get the question what is the logistics in you know paperwork and what do I give the investor right now again a lot of people have different opinions on this but this is my this is my general opinion again your your circumstances may be different but again call me anytime you got my cell phone we can talk about it but anyway basically what what what typically typically happens is that again you have an investor you're talking to them about your offering usually you're not pulling out the PPM again PPM big thick document you know 80 to 100 pages usually not pulling that out right off the bat you're usually you're leading out with an executive summary which again we can we definitely what I do PPM's I also include in my services you know will draft an executive summary and will drive a term sheet executive summary and my in my practice is usually you know again one pager or maybe your front and back something like that something very short that basically highlights the key points of the offering who the company is its principles and all that just a one pager and obviously you want to put disclaimers on there and obviously I can give you the right disclaimers that says hey look this is not the PPM this is not an offer there's just an executive summary summarizing the deal now a term sheet goes in a little more detail usually a term sheet as part of the ppm and we call the summary that summer the offering usually it's right after the state disclosure the state notice section and you know there's a section that says summary the offering basically you know that's usually a three to four page document that basically goes through not just the terms of the offering little background but also different you know highlights of the different aspects of the offering you know maybe how the you know tax treatment is planned to work and different different distribution type type information but anyway just basically a summary of the offering usually that's what you sort of lead out with just to see if there's an interest because you know if you're you're talking to investor they're looking for technology and you happen to have a real estate deal okay you know you know you don't want to have to go through the hassle of making a giving them a ppm and making an offer technically if they're not interested right so hey this is what we're doing you know if you're interested then I can talk more so usually those those initial documents are what is given obviously if the investor is interested and has a an interest in the in the offering likes what they see in the executive summary then they say okay yeah okay well here's my full ppm here here's all the disclosure full disclosure the ppm and the ppm obviously has additional exhibits as our financial statements as our subscription documents copied of our operating agreement you know it depends on the offering but different you know all that intro different information if it's a project for a real estate project you know it's got because if it's having the property itself and all of that so you know the ppm obviously is the the main selling document that's what's given and you know oftentimes it's like well what do we do next do I have to do it they give that they sign the ppm and give it back to me or how does that all work usually the ppm has exhibits and they're usually the last exhibit in the document are what we call the subscription documents those are the documents the only thing that the investor gives back to you is the subscription documents they know and usually you you know I typically have those in a per PDF and so that you know if they're printing it and signing it to you or if they are electronically signing it there now to happen to send back the full ppm they're just sending back the subscription documents the the PPN itself is something they keep that's for their records that they're that they've received right and so the subscription documents is the last you know usually the last exhibit in the in the in the ppm and those are the only documents that they would need to sign and usually it constitutes two parts one being the suitability questionnaire that they would fill out and obviously return to you but then also the subscription agreement that basically the subscription agreement is the key document that they would sign to say okay look I've received the ppm and I've reviewed the terms and I agree to these terms and they're signing and oftentimes it's incorporating other documents by reference like the operating agreement things like that so anyway but yeah so those are the documents that you received back from them and that you would then countersign as an acceptance because technically the investor is subscribing so they're basically it's like an application right that said hey I would like to invest with you based on what I've seen I'd like to invest with you and then you at that point have the discretion to say okay I accept your subscription and you would sign the subscription agreement countersign and then and usually the best practice is to send them a copy usually send them a welcome aboard letter a copy of your of this of the subscription documents that you've countersign and then obviously if you're issuing a stock certificate or membership interest certificate anything like that then that would also you know be good practice to send back with them so anyway all that is you know hopefully that makes sense I again happy to you know talk about any of that if you want to feel free to give me a call and I can go through that with you go through that with you so anyway hope everything's well and we'll talk to you on another video thank you you