![]() Some PIPE transactions are even conditioned on Securities and Exchange Commission (SEC) approval of the resale registration statement. Generally, the investors are granted registration rights, and/or the company agrees to file a resale registration statement, which allows the investors to resell the securities to the public. Upon sale, the securities are restricted, meaning that their resale is limited. In this transaction, investors enter into private purchase agreements with the public company for its securities, sometimes with (but more and more often without) the assistance of a placement agent. Traditionally, PIPE is exactly what it says: a private placement of a public company’s securities with a single investor or group of investors. In such instances, SPACs may turn to private investment in public equity (PIPE) to raise certain additional capital that they need before they can close on the de-SPAC transaction. While SPACs are capable of raising massive amounts of capital, they often set their sight on even larger targets. ![]() ![]() ![]() In fact, SPACs have already raised more money in 2021 than in all of 2020, which itself was a record-breaking year (SPACs raised $83.4 billion in 2020). Although special purpose acquisition companies (SPACs) are not new, their popularity has soared in recent years. ![]()
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