Tougher SEC Standards Are Clogging the PIPEline

A private investment in public equity (PIPE) securities offering has been among the few ways for a distressed public company to obtain necessary cash quickly in a securities offering. But PIPEs often involve the risk of significant dilution of shareholder value. Recently, the SEC has begun scrutinizing PIPE registrations more closely. A company that is considering a PIPE offering should be aware that compliance with new standards may be necessary to complete its registration successfully.

This article has been posted here with permission of The Journal of Corporate Renewal. All rights are reserved.