Jonathan Friedman’s article, “The Confidentially Marketed Public Offering for the Smaller Reporting Company,” was published by The National Law Review on November 3, 2021. The article explains the purpose of a confidentially marketed public offering (“CMPO”), the types of issuers that can conduct CMPOs, how much issuers can raise, the exchange rules that issuers need to consider, and the advantages and disadvantages of this type of offering.
“In a CMPO, an underwriter will confidentially contact a select group of institutional investors to gauge their interest in an offering by the issuer, without divulging the name of the issuer,” describes Jonathan. “If an institutional investor indicates its firm interest in a potential offering and agrees not to trade in the issuer’s securities until either the CMPO is completed or abandoned, the institutional investor will be “brought over the wall” and informed on a confidential basis of the name of the issuer and provided with other offering materials.”
To read the full article on The National Law Review website, click here.
