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Ask GWarren For Business & Nonprofits...
GWarren For Business & Nonprofits
GWarren For Business & Nonprofits, Attorney
Category: Business Law
Satisfied Customers: 355
Experience:  30 yrs Counsel, AVP Corp Governance Fortune 100 finance/ins, Nonprofit Bds, law firm. OH NJ license
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In order to raise funds for a patented product (medical device/pharmaceutical

Resolved Question:

In order to raise funds for a patented product (medical device/pharmaceutical solution) clinical study phase I, my inc. is willing to sell companies shares. What specialty (professional) can provide me with start up information, practical assistance? Company location: suburbs of Chicago, Illinois.
Submitted: 8 years ago.
Category: Business Law
Expert:  GWarren For Business & Nonprofits replied 8 years ago.
Thank you for contacting justanswer.

Based on your question it appears your company is already incorporated in Illinois so I will respond with information specifically to address your question related to the sale of shares in the company to raise capital. If, however, you would also like detail regarding start-up information regarding a corporation please reply and I will also include that information.

As a private company (one not listed on public stock exchanges) your opportunities to raise funds through the sale of shares is limited to investors your company, other investors or the professionals you engage, your lawyer, accountant, commercial bank, may help identify.

In order to protect your product and company you will want to engage a professional who is a securities lawyer to ensure your sale of shares follows Security and Exchange (SEC) rules (that are appropriate to private as well as public stock offerings). Securities lawyers can be identified through the local bar association lawyer referral service whom you may then interview as to their experience and fees in similar matters.

There is also a need to follow Illinois Securities Department administration and enforcement of Illinois securities laws, rules and regulations:

Another option is to work with an angel investor(s) to offer shares or equity purchase in your company. Angel investors will typically decided whether to invest based on your product presentation. As an example, and in no way an endorsement, I am sharing one such public domain site in Chicago that assists entrepreneurs and angel investors (there are also other tech angel investors in the Chicago area you may approach for interest and guidance):

SCORE, Counselors to America's Small Business in the Chicago area may also be able to assist you with the equity offering effort to raise capital by providing guidance in that regard at:      

I hope the above is responsive to your question. If you would like further clarification or would also like details on the start-up formation of a company in Illinois, please let me know and I will expand on the answer. Best wishes.
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