PIPEs and Mergers and Acquisitions
Many reverse mergers are accompanied by a simultaneous PIPE transaction, which is typically undertaken by smaller public companies. Shares are sold at a slight discount to the public market price, and the company typically agrees to use its best efforts to register the resale of those same securities for the benefit of the purchaser.
Read more about this topic: Private Investment In Public Equity
Famous quotes containing the words pipes and and/or pipes:
“Because the Muses never knew their pains.
They boast their peasants’ pipes, but peasants now
Resign their pipes and plod behind the plough;”
—George Crabbe (1754–1832)
“They were pipes of pagan mirth,
And the world had found new terms of worth.
He laid him down on the sunburned earth
And raveled a flower and looked away.
Play? Play? What should he play?”
—Robert Frost (1874–1963)