Marguerite Cassandra Toroian, founder of Bell Rock Capital, LLC, regularly attends the TD Ameritrade National LINC Conference. An investment advisor, Marguerite Cassandra Toroian is experienced in PIPE transactions.
PIPE (private investment in public equity) involves an exchange between a select investor and a company, where the investor buys shares of publicly traded stocks from the company at a lower current market value per share compared to similar stocks in the markets. In general, any publicly traded company is eligible to strike a PIPE deal with an accredited investor, usually a hedge fund or mutual fund company. The main goal of PIPE is to enable issuers of stock to help a company raise capital while getting shares at a discounted price.
In PIPE deals, the company creates new stock shares for issue or sells some from its holdings. The investors buy the stocks in private placements rather than on a stock exchange, and the issuer files a statement with Securities and Exchange Commission (SEC). PIPE does not require as much SEC regulation as traditional stock offerings.
Although it provides less capital to companies than other types of offerings, PIPE serves as a quick source, especially for medium and small-sized public companies that may face difficulty accessing traditional forms of equity financing. In some PIPE deals, debt that can be converted to stock is issued. This form of transaction is known as a structured pipe transaction.
PIPE (private investment in public equity) involves an exchange between a select investor and a company, where the investor buys shares of publicly traded stocks from the company at a lower current market value per share compared to similar stocks in the markets. In general, any publicly traded company is eligible to strike a PIPE deal with an accredited investor, usually a hedge fund or mutual fund company. The main goal of PIPE is to enable issuers of stock to help a company raise capital while getting shares at a discounted price.
In PIPE deals, the company creates new stock shares for issue or sells some from its holdings. The investors buy the stocks in private placements rather than on a stock exchange, and the issuer files a statement with Securities and Exchange Commission (SEC). PIPE does not require as much SEC regulation as traditional stock offerings.
Although it provides less capital to companies than other types of offerings, PIPE serves as a quick source, especially for medium and small-sized public companies that may face difficulty accessing traditional forms of equity financing. In some PIPE deals, debt that can be converted to stock is issued. This form of transaction is known as a structured pipe transaction.
