ALL PRIVATE PLACEMENTS CARRY A HIGH DEGREE OF RISK!
We will never lead you to believe otherwise or make an exception to this fact in our marketing or representation of a Private Securities Offering. This is not an area for investment by the average investor but is designed and marketed to only the most highly accredited and sophisticated investors!
When marketing or offering new Private Placement Securities, Michael Henry Flammer, our Chief Risk Officer; and Ki Ingersol, our Mergers & Acquisitions Principal will conduct an intensive investigation into the offerings authenticity and credibility. This may involve outside certified audits and financial statements, background checks into the owners and original shareholders of the company, department of justice criminal records, credit reports, dunn & bradstreet information, DMV reports, insurance reports, MIB information, personal interviews with the owners and officers of the company, personal financial statement analysis, tax returns, etc. To support our internal investigations and review, we may outsource independent third party investigators to confirm our findings, etc.
The new Private Offering will undergo a thorough examination by the Compliance Department of the Broker Dealer as well and after approval for marketing and placement, the Private Offering will continue to be monitored and periodic reporting and financial filings will be required by the Compliance Department. The issuer is expected to cooperate fully with the Compliance Department of Multiple Financial Services by providing any other documents that it may have available, such as outside legal opinions, recommendations and reviews by other investment advisors, etc. Other information that will be required will be: the experience of the officers, personal credit ratings, background checks, credit ratings and credibility and reputation, expertise in their field, nature of potential risks involved, company proformas and projections, certified audits, legal documentations, third party opinions, paper trails and other historical data if available, general ledgers and trial balances for internal review, history of the issuer and its officers, etc.
A predetermined alpha symbol will be assigned as a risk factor denoting the Broker Dealer's recommendation as to credit worthiness of the company and its majority owners, the financial strength, the degree of risk involved as a bona fide investor and shareholder as well as the potential for growth. The Alphas to be assigned are:
A - being the most desirable company in terms of low risk and potential growth; to a lowest rating of
J - being the least desirable company (junk) in terms of high risk and very limited potential for growth.
WARNING! No matter what the assigned alpha symbol, all private placement and restricted securities, with legends and conditions printed on the Certificate limiting transfer or sale, are high risk investment vehicles and every caution must be exercised before investing in these products.
Risk factors for the Private Offering will be reviewed on a periodic basis and any changes to the rating will be forwarded to all existing and potential investors by the Compliance Department.