How the Funding Process Works
- 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.
- 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.
- 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
- 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
- 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
- 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.