How the Funding Process Works

Underwriting

  • Projects that wish to raise capital via a Halagard must submit both business and financial information.
  • Halagard works with commercial aggregators of information (e.g. Experian, Dun & Bradstreet etc.) to gather information about the Project and Project Owners.
  • Halagard vets each Project by screening their financial information for evidence of past performance, stability, growth potential, and other factors impacting the Projects value to investor on the Halagard platform.

Offering/PPM

  • Halagard assists Projects with the development of Offering documentation also known as a Private Placement Memorandums (PPM)
  • The intent of the PPM is to provide an accurate, detailed and compliant review of the Project
  • The PPM includes a summary of offering terms, estimated use of proceeds, a securities description, company risk factors, a subscription agreement, an investor suitability questionnaire, plus more.

Securitizing the Project

  • Ahead of the security sale, Halagard assumes the role of issuer, designing a tradable financial instrument represented by digital securities and backed by the Projects assets.
  • The shares of the Project are moved to our asset ledger.

Establishing SharePrice

  • Suggested price per share is determined with Project Owner
  • The interested Funds are given a price range per share and privately provide their Min, Preferred and Max price per share along with their Min and Max investment in the project
  • A consensus price is determined based upon demand from QOFs

Capital Raise

  • Halagard issues Regulation D 506(c) digital equity securities on behalf of Project
  • PPMs are executed and copies sent to Halagard
  • Proof of purchase is recorded on the Halagard asset ledger
  • QOFs send capital to the Project Owners based upon the PPM schedule

Liquidity

  • SEC rules require that securities sold via Regulation D 506(c) have a one-year lockup period.  This means the shares can’t trade for one year.
  • After one year, if a QOF needs to exit an investment their shares will be offered in a marketplace viewable to other QOFs

Annual Reporting

  • Currently Regulation D 506(c) offerings do not require quarterly or annual reporting.
  • Halagard requires all Project Owners to file an annual report for their shareholders and provide news updates throughout as required by the PPM.
  • Halagard provides a standard template for the annual reporting.