Quoted in the on-line business magazine “Financial Week” Corey Ribostsky of the NIR Group had this to say:
“The amount of companies looking for PIPE financing or PIPE-like financing has increased somewhat as other secondary and follow-on offerings have been stalled on Wall Street.”
As you may already be aware, PIPEs are “Private investments in public equities.” This investment strategy is becoming increasing popular as control investments are harder to execute. Companies feel compelled to utilize PIPEs for their financing when the usual capital markets do not provide financing and the usual equity markets do not exist for that issuer.
