When Private-Placement subscription offers in promising companies like Royal Helium do become available, the “average investor” had to either get a personal invitation from the company, called the President’s List, or go through a stockbroker or investment-dealer firm in order to purchase them, the latter of which meant paying a commission. You also had to have a stockbroker that “was in the know”, and even they might not know of the Private-Placement opportunity. They had to have the connections that got them invited to “the offer”. The opportunities were few, and the stakes can be high because of the potential risks, but the rewards can literally be, as Mariusz Skonieczny of Microcap Explosions would say, explosive! He says it better than I do. But how does the so-called “average retail investor” get an invitation?
You don’t!
You have to go find them and take a position. Private-Placement investment opportunities are open to everyone that qualifies as an “accredited investor”, and you will see that is easier than you think. In fact, you don’t even have to be a so-called “accredited investor” in some cases. You just have to ask to participate. It really is that simple. But first, you have to find them, and you have to get up the courage to ask them for “the offer”. You have to do your research and act fast, as Private Placements are only open for a limited time, usually a week. I did it, and you can too!
Private Placements will be described with a view to identifying the pros and cons from a retail investor’s perspective (i.e., You, the reader and potential investor, and not that of companies trying to use Private Placements to raise capital from, well, investors like you and me). And trust me, these companies don’t care who the investors are. To them, your money all looks the same. Your money does not represent race, ethnicity, inequality, height, width, colour of your eyes or skin, or the size of your feet (for some reason, the lattermost factor might be important to some people). To the company, it is just numbers and credits in their corporate bank account so they can move a project forward, as Rick Rule would say, to answer the question. In fact, the more shareholders, the merrier is their mantra, because it means a broader and more diverse investor base, and that’s always a good thing for everyone involved. Equally, and perhaps more dangerous to you, is that this is your hard-earned money; it doesn’t care what you invest it in, so you better do your research. Money doesn’t know about stupidity, only humans do.
In my new book, Private Placement Profits, resources will be provided to assist you in finding and evaluating Private-Placement investment opportunities. Finally, the book will detail a profit-taking exit strategy suited for different risk-tolerance levels. Several real-world examples of Private Placements will be presented that I personally participated in and will be used to demonstrate the Private-Placement Profits strategy in action. Private-Placement sourcing and evaluation resource links, tracking documentation templates, and other information are also available online through the book’s website for book purchasers.
