How To Raise Capital Using A PIPE

Law360, New York (September 5, 2013, 1:10 PM EDT) -- A private investment in public equity, or PIPE, is an alternative financing option for public companies from traditional capital markets transactions. A PIPE is a private offering of unregistered securities exempt from the registration requirements of Section 5 (15 USCS § 77e) of the Securities Act of 1933, as amended (the “Securities Act”).

Typically a PIPE is structured as a private placement under Rule 506 (17 CFR 230.506) of Regulation D, which is a safe harbor from the registration requirements of Section 5 under Section 4(a)(2)...
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