Professional Legal Counsel For PIPE Transactions
One of the primary reasons that a company goes public is so that it may continue to access the capital markets. Private Investment in Public Equity (PIPE) is one of the most common forms of follow-on access to capital markets for a public company. PIPE transactions have been heavily institutionalized in the past few years; the market for PIPEs has exploded. Our team at ANTHONY, LINDER & CACOMANOLIS, PLLC, has kept pace with this trend every step of the way.
A Private Investment in Public Equity (PIPE) refers to any private placement of securities in an already-public company made to selected qualified investors (generally accredited or institutional investors). Most PIPE transactions involve a combination of common or preferred equity and warrants. Most PIPE transactions also include the immediate filing of a re-sale registration statement on Form S-1 or F-1, or for those companies with an existing shelf registration statement on Form S-3 or F-3, the immediate filing of a takedown prospectus supplement to register the shares purchased by the investor in the PIPE transaction.
A standard PIPE consists of a private placement of securities. Generally, the transaction closes before or after the effectiveness of a resale registration statement. PIPE investors generally purchase the company’s securities in a private placement transaction predicated on the condition that a registration statement for the resale of the securities is filed with and ultimately declared effective by the SEC.
Let Us Guide You Through The Process
Our team has completed hundreds of PIPE transactions. Our firm can help you understand the complicated nature of these processes to ensure you achieve your desired goals and remain in compliance with the current regulatory environment. Call 877-541-3263 or email us to schedule an initial consultation. We look forward to working with you.