Opinion ID: 2982178
Heading Depth: 2
Heading Rank: 1

Heading: The Stock Offering

Text: On July 16, 2009, Community Central Bank Corporation issued a Private Placement Memorandum (“PPM”) in order to raise up to $2,500,000 in gross proceeds for its sole asset, the Community Central Bank.1 The PPM was supplemented on October 19, 2009, and December 16, 2009, in order to increase the amount of the offering to $5,000,000 and to extend the cut-off date for investors to purchase the “Series B Cumulative Convertible Perpetual Series B Preferred Stock” being offered. This was a private stock offering; the shares were not to be listed on any securities exchange. Shares were priced at $1,000 with a minimum purchase of 250 shares. Prospective buyers were required to qualify as “Accredited Investors,” defined in the accompanying Subscription Agreement as persons or entities meeting certain financial criteria, such as having an individual net worth exceeding $1,000,000 or an annual income of more than $250,000. Between November 2009 and January 2010, Plaintiffs signed Subscription Agreements to buy varying amounts of the stock, with the actual sales taking place on December 31, 2009 and January 29, 2010. Plaintiffs’ money was briefly held in escrow by CCB pending completion of these transactions. 1 The Corporation and the Bank are referred to collectively as “CCB.” Docket numbers (“Doc.”) are those of the district court’s electronic filing system. 2 No 13-1444 Dailey v. Medlock