| CHELA
Capital Partners provides sophisticated financing solutions and
strategic advice individually tailored to your financing needs.
Private Investment in Public Equity ("PIPEs")
have become a robust financing alternative for growth companies.
Key Advantages of PIPEs financing are
as follows:
- Emerged as alternative investment vehicle
for public companies (issuers) and financial institutions
(buyers)
|
- Flexible method of raising capital:
no hard and fast rules or structures
|
- May be structured as common stock, convertible
debt or convertible preferred equity
|
- Rapid process that may be completed
quickly, subject to investors’ due diligence requirements
|
The increased attention
to PIPE transactions as a viable financing alternative has been
driven by:
- High price volatility and decreased liquidity levels,
making it difficult to execute publicly marketed offerings
|
- Large number of high-growth companies
that need to raise capital but do not want to incur the
time or expense associated with a follow-on offering
|
During the last few
years, PIPEs have provided an important financing option for public
companies that are:
- Otherwise unable to access the public
markets for capital
|
- Do not want to raise large amounts of
capital at current stock price
|
|
