direct placement

Direct placement

Selling a new issue not by offering it for sale publicly, but by placing it with one of several institutional investors. Also known as a private placement.

Private Placement

The sale of a new issue to a few large institutional investors without registering with the SEC. A private placement is exempt from SEC registration, subject to certain restrictions, because it is not offered to the general public. In order to make a private placement, the issuer must file a private placement memorandum (PPM), which explains exactly why the issue complies with SEC Regulation D exempting certain companies from registration; this is done to protect both the issuer and the investors. According to Regulation D, a PPM must contain a complete description of the security and the terms of the sale. It must also include applicable information about the issuer's financial situation and applicable risk factors. Private placement is also called direct placement.

direct placement

The sale of a new security issue to a limited number of large buyers rather than to the general public. Direct placement generally involves less expense to the issuer, although the buyer may be able to negotiate a more favorable price.
References in periodicals archive ?
Insight Global completes more than 33,000 placements annually in short-term, long-term, contract-to-hire, and direct placement positions through our network of more than 43 regional offices across the U.
M2 EQUITYBITES-September 28, 2017-Tantech Holdings Ltd reports registered direct placement of common stock & warrants
He also created lending structures for investors, leveraging an array of lending products from conventional construction and permanent financing, tax-exempt bond direct placement, bridge loans, and federal, state, and historic tax credit programs.
TMAC offers strategic and tactical medical science liaison (MSLs) and clinical nurse educator support services, as well as medical affairs consulting, medical communications support, and direct placement services.
TMAC offers strategic and tactical medical science liaison and clinical nurse educator support services in addition to medical affairs consulting, medical communications support, and direct placement services.
Formed in 1985, the IPA is one of the direct placement industrys leading trade organizations.
Gladstone Commercial Corporation (NYSE: GOOD) has announced the pricing of a registered direct placement of 1,043,725 shares of its 7 percent Series D Cumulative Redeemable Preferred Stock, at an offering price of USD25.
NASDAQ: ORMP) said it has closed its registered direct placement with institutional investors with the sale of USD5.
The pallet supports full- and split-case load sorting at the point of distribution as well as direct placement on the floor of the retailer.
The company added that Fuijan Snowman's subsidiary, Hong Kong Snowman Technology Ltd, has subscribed for a further 30,000,000 shares in Opcon in a direct placement, raising the company's ownership in Opcon to 17.
NYSE MKT: CUR) has closed a registered direct placement of 6,872,859 shares of common stock at $2.
Indaba) in connection with the private placement of senior notes and the registered direct placement of common stock.