Piggyback registration

Piggyback registration is an arrangement under which certain existing securities issued by a business are included in a new offering of stock to the public. By doing so, the holders of the existing securities can sell their shares to other investors. The prospectus associated with the sale of shares must state the nature of the shares being included in the offering under this arrangement, as well as the names of the people selling their shares. Piggyback registration rights are typically included in a private placement, so that investors have some hope of eventually being able to sell their shares.

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