What are PIPE transactions?

The SEC has defined a PIPE transaction as follows:

“PIPE” stands for “private investment in public equity.” In a PIPE offering, investors commit to purchase a certain number of restricted shares from a company at a specified price. The company agrees, in turn, to file a resale registration statement so that the investors can resell the shares to the public. To the extent that they increase the supply of a company’s stock in the market, PIPE offerings can potentially dilute the value of existing shares. (Source)

Go Public Institute knows that completing a successful financing is often a critical step in completing a reverse merger. Therefore, we have developed ten important guidelines for attracting growth capital.

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Article by William K. Sjostrom, Jr.

Go Public Institute can assist your company in closing a successful PIPE financing by introducing qualified investors, placement agents or investment bankers. Contact us for more information on public shells currently available at 281-440-7530.