Are private placements risky?

Private placements involve many risks, some of which are:

• Illiquidity of securities
• There may be no public market for securities
• Limited public information
• Limited operating history of the company
• Dependence on key existing and future personnel
• Possibilities of immediate and substantial dilution
• Broad discretion in application and use of funds
• Additional financing often will be required, but no guarantee that it will be available