Mark Elenowitz, managing director for Digital Offering LLC, Saturday urged investors interested in the private placement offering for Newsmax to act now, as the early offer will close when investments reach the $150 million mark.
"The amount of interest is nothing that we've ever seen," Elenowitz told Newsmax's "Saturday Report." "We have over 85,000 investors that have indicated to either be a part of the private placement or be a part of the upcoming public offering."
That shows that viewers now have an opportunity to become shareholders, with qualified buyers being able to participate in the private placement offering before Newsmax goes public, he said.
"We've conducted this under something called the Jobs Act, and that gives us the ability to actually be on air today and talk about this and talk about the upcoming public offering," he said. "Investors can participate now by going to www.newsmaxinvest.com. "We're over $140 million of indications and already funded. The company is on track to hit the mark of $150 million."
Newsmax has filed with the Securities and Exchange Commission for a public offering, which is anticipated to take place in the first quarter of 2005, likely in mid-February, he added.
"Time is running out on the private placement," Elenowitz said. "Now, this is a little different. You have to be what's called an accredited investor, which means you have to have a $200,000 income or $1 million net worth. But by getting involved today, you get benefits that are ahead of the public offering, like a 25% discount and a 7% coupon."
He noted that on the website, www.newsmaxinvest.com, there is a button that says "invest now."
"When you hit that, you have a chance to be able to invest directly online and use your credit card," he said. "You'll have to upload, upload your accreditation documents, and fill out some forms. Or you can ask to have the documents emailed to you, and we'll email them immediately where you can print them out at home and get them in and send them back to the company."
Investors can also have the documents sent to them in the mail, but they must act quickly on them, Elenowitz stressed.
"Once we hit the $150 million mark, unless we oversubscribe, you're not going to have an opportunity to participate," Elenowitz said.
People who are not accredited investors can also sign up to be notified when the public offering comes out.
"When the public offering comes out, all you need to be is over the age of 18," he said. "You can go online, you can use your credit card, and you can be a part of that public offering."
The investment opportunity comes as Newsmax's ratings are booming, so the timing couldn't be better, Elenowitz noted.
"I think the other night we saw the that Newsmax ended up beating out CNN on Christmas Eve on many of the shows," he said. "The company just recently signed a deal with YouTube TV, so it now expands the reach and the viewership.
"So every day this company is getting more and more viewers. Conservative viewers are realizing that Newsmax is fair and balanced and want to be a part of fair and balanced news reporting – and supporting Newsmax by being an investor is a great way to be a part of the team."
But timing is crucial, he said.
On the website, www.newsmaxinvest.com, "you'll see the private placement memorandum," Elenowitz said. "If you're accredited, read it. It tells you all the good, all the bad. It makes sure it's appropriate for your investment strategy. You'll also see a PowerPoint that discusses the opportunity and how the company has been growing.
"There is also a section with frequently asked questions that gives further information," he said, encouraging potential investors who are not accredited to "go to the green box, enter your information, and we'll be sure to give you the first chance to be a part of the public offering when it's available."
Disclaimer: Money raised includes funds received and investments in the process to be completed. Newsmax is currently undertaking a private placement offering pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Rule 506(c) of Regulation D promulgated thereunder. Investors should consider the investment objectives, risks, and investment time horizon of the Company carefully before investing. The private placement memorandum relating to this offering of equity interests by the Company will contain this and other information concerning the Company and the securities referenced in this document, including risk factors, which should be read carefully before investing. You should be aware that (i) the securities may be sold only to “accredited investors,” as defined in Rule 501 of Regulation D; (ii) the securities will only be offered in reliance on an exemption from the registration requirements of the Securities Act and will not be required to comply with specific disclosure requirements that apply to registration under the Securities Act; (iii) the United States Securities and Exchange Commission will not pass upon the merits of or give its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials; (iv) the securities will be subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities; investing in these securities involves a high degree of risk, and investors should be able to bear the loss of their entire investment. Furthermore, investors must understand that such investment could be illiquid for an indefinite period of time. The offering documents may include “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions for forward looking statements. This information is supplied from sources we believe to be reliable but we cannot guarantee accuracy. Although we believe our expectations expressed in such forward-looking statements are reasonable, we cannot assure you that they will be realized. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, but not limited to the risks and uncertainties set forth in the attached materials, which could cause actual results to differ materially from the anticipated results set forth in such forward-looking statements. Any forward-looking statement made by us speaks only as of the date on which it is made, and we undertake no obligation to publicly update any forward-looking statement except as may be required by law.The Company is "Testing the Waters" under Regulation A under the Securities Act of 1933. The Company is not under any obligation to make an offering under Regulation A. No money or other consideration is being solicited in connection with the information provided, and if sent in response, will not be accepted. No offer to buy the securities can be accepted and no part of the purchase price can be received until an offering statement on Form 1-A has been filed and until the offering statement is qualified pursuant to Regulation A of the Securities Act of 1933, as amended, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date. Any person's indication of interest involves no obligation or commitment of any kind. The information in that offering statement will be more complete than the information the Company is providing now, and could differ materially. You must read the documents filed. No offer to sell the securities or solicitation of an offer to buy the securities is being made in any state where such offer or sale is not permitted under the "blue sky" or securities laws thereof. No offering is being made to individual investors in any state unless and until the offering has been registered in that state or an exemption from registration exists therein. The securities offered using Regulation A are highly speculative and involve significant risks. The investment is suitable only for persons who can afford to lose their entire investment. Furthermore, investors must understand that such investment could be illiquid for an indefinite period of time. No public market currently exists for the securities, and if a public market develops following the offering, it may not continue. The Company intends to list its securities on a national exchange and doing so entails significant ongoing corporate obligations including but not limited to disclosure, filing and notification requirements, as well compliance with applicable continued quantitative and qualitative listing standards.