PIPEs: A Guide to Private Investments in Public Equity: Revised and Updated Edition

CHAPTER 7

Registered PIPEs Registered Direct Transactions

JOSEPH SMITH

Feldman Weinstein & Smith LLP

 

 

 

 

Public corporations routinely raise additional capital through the issuance of new equity securities. Traditionally, most of these issuances have been underwritten by an investment bank or a syndicate of investment banks and offered to public investors in what is commonly referred to as a “follow-on” offering. This process, which includes drafting a prospectus, registering the securities with the SEC, and bringing management on a road show, is both time-consuming and expensive. It is also a process deeply affected by market conditions, which are prone to change during the course of the legally required sequence of events, aborting many proposed ...