PIPE

The term PIPE stands for private investment in public equity.  In a typical PIPE deal, an investor purchases a minority stake in a public company, usually buying restricted stock at a discount to market.  PIPEs are typically sold to a limited number of institutional investors, allowing the issuer to know the identity of its new shareholders. For companies with a relatively small public float, PIPEs are an ideal way to sell a large block of equity without disrupting public trading of its stock.  This financing technique is popular due to the relative efficiency in time and cost of PIPEs, compared to more traditional forms of financing such as secondary offerings.  In a PIPE offering there are less regulatory issues with the SEC and there is also no need for an expensive roadshow, lowering both the costs and time it takes to receive capital. PIPEs are very popular with smaller publicly traded companies, which have a more challenging time accessing more traditional forms of equity financing. 

MCM Value Management will work with a company to determine if a PIPE is the best way to raise capital.  If MCM Value Management and management decide to pursue this financing technique, MCM Value Management will take care of the marketing materials required, along with the regulatory and legal paperwork.  Most importantly, MCM Value Management will identify and solicit investors to raise the capital.