Mark Elenowitz, managing director for Digital Offering LLC, with Newsmax's private placement investments reaching the $185 million mark, urged potential investors interested in the offering to act soon, as the deadline for the opportunity is approaching rapidly.
"We've been talking about this for the last six months as Newsmax has been preparing to go public onto the New York Stock Exchange," Elonowitz explained to Newsmax's Lidia Curanaj Saturday. "Ahead of that, we've been doing what's called a private placement. And that's that $185 million number. We actually just increased the size of the offering. It originally was $150 million, with the ability now to go up to $225 million."
But the time to get involved in the private placement is coming to an end on Jan. 31.
Full information is available online, through the Newsmax Invest site, where investors can read all the information about the offering and be a part of it, Elenowitz added.
"If you can qualify, you get a chance to get a 25% discount ahead of this public offering," he told Curanaj.
To participate and get the 25% discount, investors must be accredited, meaning they must have an annual income of $200,000 or a $1 million net worth.
"We know all the viewers, not everybody has that type of net worth," he said. "And that's okay, because you can still be a part of the public offering. When you go to Newsmax Invest.com, there's a little green box. Put your name and information there, and you'll be the first to know about the public offering when it's available. And all you have to do is be over 18. You can go on with a few clicks when the offering is available. Use your credit card and be a part of the Newsmax family."
People who buy the early shares will be able to sell them once the company goes public if they wish, said Elenowitz, explaining that the company will likely go public within the next "30 to 45 days."
"We've been at it with the SEC for several months, and we're coming to the end of the process," he said. "Those shares that you'll buy in that IPO round or the public offering round will be free trading, so you'll be able to participate with shares in the private placement with the discount. Those are restricted but will be registered shortly after the listing. So the whole period will be relatively short in timeframe."
Elenowitz further pointed out that Newsmax has experienced a great deal of growth in the past several months, including with "enormous" Nielsen ratings.
"The company has also just recently signed with YouTube TV, continuing to expand its reach," he said.
Investors joining in before the deadline will also get a 7% coupon for a "little extra bonus," said Elenowitz.
"When you go there, you're going to see a button that says Hit invest," he said of the website. "Now when you click that button, you're going to get a chance to either subscribe directly online right there on the portal, or you can have the documents emailed. The other thing you can do is have them mailed. We advise you at this point though, with the time less than a week or really about a week, we encourage you to use either the online portal or request. The email will immediately send you the documents. You can print them out, fill them out, and mail them back to us. And as long as you get it in and processed before the 31st, you can be a part of this Newsmax offering."
And once the public offering is complete, subject to SEC approval and the NYSE approval, Newsmax will be ringing the bell and trading under the symbol Newsmax on the main board of the New York Stock Exchange, said Elenowitz.
"What is so revolutionary is this is the first time that the New York Stock Exchange will list a company utilizing what we call crowd finance," he said. "This is something that's under the JOBS Act, and we've had over 85,000 investors indicate to be a part of this public offering. So it's truly a historic moment. And on the private placement, we've had over 7,000 investors participate to date. So it's been very well received."
People who have been previous investors can also participate, he said.
"We know that it's been a little bit of trouble going through the accreditation process because you have to prove you're accredited, which means upload your documents, and show that you have the income or net worth," he said. "But if you're already an existing shareholder, all you need to do is go back to your portal. You can go to Newsmax Invest.com. There's another link there that will show you directly how to make a follow-on investment. You don't have to go through the headache of uploading all of your documents again, we'll use your previous documents you can sign on and as long as you're in there before Jan. 31, you can continue to increase your investment size."
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.