Offering Circular

Offering Circular

Here at Prospectus LLC, our experienced team aids businesses across the world with the creation of offering circulars. In addition to drafting offering circulars, we also assist Issuers with the relevant regulatory filing and registration of investor offering documents. The Offering Circular document, also known as an “OC”, is typically used for company filings with regulatory bodies, the offering circular document is typically shorter in length than a prospectus, and serves as a summary to that comprehensive offering prospectus. As such, the offering circular is an abbreviated financial document used to raise capital, much like an offering memorandum. The offering circular is often an essential tool for companies to effectively raise funding.

Investors

The purpose of the offering circular is to raise capital. For the most part, a prospectus is comprehensive narrative that incorporates all relevant regulatory rules pertaining to jurisdictions that oversee the issuance of securities, and consequently investors may not want to read the full document. Instead, they may want to read an offering circular in view of the fact that it is shorter and more concise rendition of the prospectus, but has the same content insofar as terms and conditions of the offer to investors. While offering circulars are usually utilized by companies to raise capital from investors, they are also used by mutual funds and hedge funds to sell securities.

Summary or Executive Summary

Like the offering circular, the executive summary also serves as an abbreviated document. However, instead of relating to a prospectus, the executive summary is a shortened version of a company’s business plan. This document is utilized by the investor to get a general picture of a company’s structure. Although the offering circular and executive summary serve as easier, shorter documents, an investor is likely to read the full prospectus and business plan before giving out their money. Investors will use these abbreviated documents to formulate their first impressions; if the document is not crisp and clear from the outset, prospective investors will likely walk away without even reading the full prospectus or business plan. That is why its important to craft a well-written and attractive offering circular or executive summary.

Highlights

The most important aspect of the offering circular is to pique the interest of the investor, so that they will continue to read the full prospectus. It should highlight key aspects of the company in a brief manner so that potential investors don’t have to read the full prospectus in order to understand the opportunity in order to reach an educated decision.

Bond Circular and Note Circular

Offering circulars are also utilized by firms and institutions that want to sell equity and or debt securities. An offering circular of this nature would disclose pertinent information about the equity construct and in the case of bonds or notes, it will include details such as payment information, interest rate, maturity rate and more. Bond or note circulars are used in the same way as offering circulars. They serve as shortened investor offering document to attract individuals to debt securities. If the circular is written in a manner that inspires focused attention and flows seamlessly, the presumption is the investor will continue to read the full bond or note prospectus.

Prospectus LLC

Here at Prospectus LLC, our team is experienced with the writing of offering circulars, as well as red herrings, offering prospectus documents, and necessarily, writing business plans that serve as the foundation to the various types of investor offering documents. In addition, we can assist with the filing and registration of offering circulars with the relevant governing regulatory bodies across the globe. Please contact us with any questions you may have, and feel free to contact us for a initial free consultation.

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Offering Circular aka OC


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Offering Circular

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