The National Market Exchange - NMEX

Blueprint for Establishing a Hannaian Asset Development Investment Group (HADIG)

A Hannaian Asset Development Investment Group (HADIG) is essentially a non publicly traded Hannaian Economic Development Investment Council (HEDIC) established specifically to fund and develop special projects. HADIGs can operate as local investing groups to promote economic development or projects in a local catchment area. HADIGs can also be set up to develop an investment and economic development culture within a community, and to teach investment techniques and investment research to a group whose goal is to raise funding either individually or as a group. The funds raised can then be channeled into local economic development or personal projects.

Members of a HADIG can either pool their resources, investing as a group, or they can invest individually. A HADIG may simply operate as an investment research group which shares mutual research, guidelines and techniques similar to the Hannaian Investment Research & Publishing Group.

HADIGs are really economic development funding & investment groups for special projects or purposes. The better structured and larger the group, the greater the chances and opportunities to raise the monies needed to fund the special projects. Generally, a Corporation, or a Limited Liability Company (LLC) structure will be best suited for any serious fundraising.

In addition to raising funds by investing their collective and individual resources, HADIGs can also solicit equity and debt investments from various funding sources such as banks, angel investors, venture capitalists, private equity firms, hedge funds, and now even internet based crowdfunding. Crowdfunding can take the form of charitable donations, rewards based donations, or under the Obama JOBS Act, equity based funding from accredited investors, and from regular retail non-accredited, non-sophisticated investors pending approval of required regulations within the United States,

All private companies, organizations and their promoters involved in raising equity or debt funding must pay strict attention to operate within the Security & Exchange Commission’s (SEC’s) guidelines and safe harbors. They must avoid violating the laws and regulations which require all fundraisers to register their investment offerings of equity or debt with the SEC unless they fall under one of the exempted categories. In practice this is a very difficult thing to do and many individuals, groups and organizations inadvertently violate these provisions with their investment offerings. Generally, within the United States, fundraising for equity and debt investments cannot be broadly or widely advertised to the public unless registered with the SEC.

The new regulations in the JOBS Act now provide extremely strict guidelines governing what constitutes an Accredited Investor. These new guidelines now severely limit the pool of investors capable of being solicited for investments by private companies and operators seeking funding.

As compared to Hannaian Economic Development Investment Councils (HEDICs), HADIGs are relatively simple to set up and operate and can serve as precursors to the development of the more complex HEDIC which is a publicly traded Securities & Exchange (SEC) registered Business Development Company (BDC). (See more at Blueprint for Establishing Hannaian Economic Development Investment Councils (HEDICs)

HADIGs may be more appropriate for economic development funding of smaller communities or projects. Also, a HADIG may serve as an excellent precursor to the development of the more complex HEDIC by providing a culture of investment in the target area, and a source of an indigenous investor base for a publicly traded, SEC registered HEDIC.

Incorporators of HADIGs can either formally incorporate the group or set it up as a partnership or other group operating structure. The HADIG simply needs to follow established guidelines which basically provide a safe harbor for the operation of private Investment Clubs.

Incorporators of HADIGs who want to develop a group which is focused on fundraising through investing and trading in publicly listed & traded securities and markets can simply adopt the operations of the Hannaian Investment & Publishing Group (HIPG). They may do so by registering at The National Market Exchange (NMEX) (www.nationalmex.com), requesting to join the HIPG operated Hannaian TraderLine Center, and either becoming an affiliate organization of HIPG, or simply designing the operations of their own group along the guidelines developed and used by HIPG.