Why is a 3 year corporate note from a publicly traded company (over the counter) considered private placement?
This is a three year convertible note yielding 10% annually, if the note is converted to shares, they are restricted from trading for 6 months. The company is traded on pink sheets. The note offering is to raise 1.5 million in capital to cover a recent purchase order.




because of the differences between notes and bonds, the note can/will be offered continuously over time and be considered a shelf registration.