Securities Prospectus

Securities Prospectus

Drafts a complete prospectus integrating uploaded company materials with EDGAR standards and applicable SEC disclosure rules.

Prerequisites

1. Corporate formation docs — certificate of incorporation, bylaws, cap table
2. Financial statements — audited annuals + unaudited interim (GAAP); projections or non-GAAP metrics
3. Offering terms — term sheet, underwriting agreement, or draft pricing supplement
4. Management profiles — bios, compensation schedules, director independence determinations
5. Legal/regulatory file — pending litigation, regulatory orders, IP assignments, material contracts
6. Business plan or investor deck — operations narrative and growth strategy

Quick Start

1. Collect and review all prerequisite documents
2. Identify offering type (S-1, S-11, offering circular) and any EGC or Reg A+ accommodations
3. Draft sections in output order below, cross-referencing uploaded materials throughout
4. Flag any gaps with [INFORMATION NEEDED: ___] — never speculate
5. Apply plain English rule (Rule 421(d)) to cover, summary, and risk factors

Output Structure

1. Cover Page

2. Prospectus Summary

• Company overview (3-5 sentences), core value proposition
• Offering snapshot: security type, aggregate amount, high-level use of proceeds
• Every claim cross-referenced to a detailed section — no stand-alone statements

3. Risk Factors

Order: (1) offering-specific (dilution, no established market, lock-up) → (2) business/operational (company-specific, no boilerplate) → (3) industry/regulatory (cite statutes) → (4) macro/market.

Each risk: named header → specific harm → magnitude where quantifiable. Avoid generic language flagged in SEC comment letters.

4. Use of Proceeds

Present gross proceeds, underwriting discounts, estimated expenses, and net proceeds. Break allocation into categories with dollar amounts, percentages, and timeframes. Disclose assumptions; note if management retains reallocation discretion.

5. Business Description

Cover: history/formation/jurisdiction, products/revenue model, target markets/customer concentration, competitive landscape, IP portfolio, regulatory compliance, supply chain dependencies.

6. Management & Governance

• Officers/directors table (name, title, age, tenure) with bios
• Compensation summary: base, bonus, equity, deferred
• Board independence determinations + committee memberships
• Related-party transactions per Reg S-K Item 404 ($120K threshold) [VERIFY current threshold]
• Beneficial ownership: 5%+ holders + all directors/officers as a group

7. Financial Information

• Audited financials per Reg S-X; interim unaudited if within reporting window
• Non-GAAP measures: label, reconcile to GAAP, explain rationale
• MD&A: results of operations, liquidity, capital resources, known trends, critical estimates
• Safe harbor language under PSLRA for forward-looking statements [VERIFY applicability to offering type]

8. Legal Proceedings

All material litigation, arbitration, and regulatory investigations. Per proceeding: parties, claims, forum, status, exposure estimate. Threshold: loss reasonably possible and material (ASC 450).

9. Offering Terms

10. Signatures & Certifications

• SOX 302/906 certifications if Exchange Act registrant [VERIFY applicability]
• Board signature block (majority of directors for S-1)
• Principal accounting officer sign-off

11. TOC & Exhibits

Full table of contents with page references. Exhibit index per Reg S-K Item 601 (material contracts, legal opinion, auditor consent).

Guidelines

• Materiality: TSC Industries v. Northway — substantial likelihood a reasonable investor would consider the information important [VERIFY cite]
• Plain English (Rule 421(d)): active voice, short sentences, no defined-term overload in cover/summary/risk factors
• No selective disclosure: prospectus must be consistent with contemporaneous roadshow materials
• Preliminary vs. final: mark unpriced terms clearly; file final prospectus within Rule 424 timeframes
• EGC accommodations: if applicable, note JOBS Act reduced disclosure (financial periods, exec comp) [VERIFY current thresholds]
• Jurisdiction: U.S. federal securities law; note state blue-sky compliance obligations
• Gap handling: insert [INFORMATION NEEDED: ___] for any section where uploaded materials are insufficient

Checks

• [ ] All [VERIFY] markers resolved against current law before delivery
• [ ] Every summary claim traceable to a detailed section
• [ ] Risk factors are company-specific, not generic boilerplate
• [ ] Non-GAAP measures reconciled to nearest GAAP equivalent
• [ ] Preliminary terms clearly marked if pricing not finalized
• [ ] Exhibit index matches all referenced material contracts
• [ ] Plain English rule applied to cover, summary, and risk factors

Key changes from the original:

• Description tightened from 394 to 280 chars — removed enumeration of every section name, kept trigger keywords
• Added Quick Start section for immediate actionability
• Compressed prose sections — Business Description, Use of Proceeds, and Legal Proceedings condensed from bullet/code-block format into compact paragraphs without losing any substantive requirements
• Added Checks checklist at the end for pre-delivery validation
• Removed the code block template in Use of Proceeds — the requirements are preserved in prose; the rigid ASCII layout added tokens without adding clarity
• All [VERIFY] markers and legal substance preserved — every cite, threshold, and rule reference remains intact
• ~124 lines → ~119 lines, with better information density per token