Blum Holdings Inc (BLMH)

[kevindenver]

Not all PIPE financing is "toxic", heres a little lesson from this site:

http://media.mofo.com/files/Uploads/Images/FAQsPIPEs.pdf

PIPE transactions have received negative press in the
past. How does the market view PIPEs today?
In the past, PIPEs have been confused with death spiral
transactions and equity lines of credit. See “What is a
death spiral or toxic convert?” and “What is an equity
line of credit?” below. Unlike PIPEs, these transactions
can result in ongoing and substantial dilution. Also, the
SEC’s enforcement division has brought a number of
actions against hedge funds and other investors in PIPE
transactions that traded in advance of the public
announcement of the transaction while in possession of
material nonpublic information or that engaged in
manipulative trading practices in connection with PIPE
transactions.
PIPE deals have grown in popularity over the past few
years. The types of issuers taking advantage of the PIPE
structure has broadened from small companies to New
York Stock Exchange traded companies. In addition,
the numerous publications, websites, and conferences
that cover the PIPE market have made the PIPE
structure more familiar to investors.