ACKRELL CAPITAL CHAPTER IV_ U.S. Legal Landscape as publicly traded companies, but ordinarily will market its securities using a private placement mem- orandum (PPM) that includes information similar to some of the information required to be disclosed by publicly traded companies. An issuer in a private placement is subject to liability under federal secu- rities laws for misrepresentation or fraudulent statements made in a PPM or otherwise in connection with the private offering. By all indications, federal securities laws do not prohibit companies engaged in federally illegal cannabis activities from raising capital through the issuance of securities, nor do they prohibit industry participants like stock exchanges and investment banks from performing their ordinary market func- tions in connection with such companies. The SEC has allowed the registration and sale of securities offered by companies engaged in federally illegal cannabis activities and the trading of those securities on multiple U.S. stock markets. Although the SEC has on occasion suspended trading in some of these securities, those suspensions generally have been due to alleged violations of securities regulations rather than unlawful cannabis activities. A cannabis company offering or selling securities must comply with federal securities laws—like any other issuer—by making required notice or registration filings and by providing truthful material information to investors. Any discussion of risks delivered to investors, whether required by securities laws or volunteered by the issuer as part of a private offering, should include a thorough discussion of the unique risks posed by operating a cannabis business engaged in federally illegal conduct. For an example of some of these risks, refer to Chapter IX, Cannabis Industry Risk Factors. Federal Bankruptcy Law Bankruptcy is a legal proceeding by which a debtor resolves its debt obligations and creditors are afforded certain rights in the debtor