The Offering or Private Placement Memorandum (PPM) contains certain securities information required by law for the investors to review in order to determine whether they wish to invest money a given film project. Many of the risk factors and hazards associated with investing in film are set forth in this document. Some of these risk factors can be fairly brutal, such as advising the investors that they can lose their entire investment, that the producers have no idea of what they are doing, that no one in their right mind invests in film, etc. The Offering also contains other specific Securities Laws information and warnings and usually explains the actual deal in detail. The Offering is presented to the investors along with a Subscription Agreement, a Business Plan and the LLC Operating Agreement (or other controlling agreement), as usually prepared by the attorney for the producer.
