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PIPE -
Private Investments in Public Equities
Through
cooperative alliances with the leading private placement
funds, Stramark has demonstrated pioneering leadership in
providing capital to emerging listed growth companies.
A private investment in public equity, often called a PIPE,
involves the selling of publicly traded shares to private
investors. The shares are almost always offered through an
offering registered with the Securities and Exchange
Commission. Many reverse mergers are accompanied by a
simultaneous PIPE transaction, which is typically undertaken
by smaller public companies.
Shares are sold at a negotiated price, typically a slight
discount to the public market price, and the Company agrees
to register the resale of those same securities for the
benefit of the purchaser. The benefit to these transactions
for smaller issuers is that they provide quick access to
capital at a reasonable transaction cost.
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