PIPE Transactions

PIPE (Private Investment in Public Equity) transactions are when private investors buy shares directly from a public company, often at a negotiated price, outside of the open stock market. This method allows a company to quickly raise capital without going through the lengthy process of a traditional public offering. The investors typically purchase a significant amount of shares at a discounted price, providing the company with needed funds while giving the investors a potential for future gains. PIPE deals are commonly used by companies seeking quick financing and can involve institutional or accredited investors.