Hedgeman, you continue to be an agitator and someone quite obviously with an in-depth knowledge of financing, so its disengenuous of you to make posts like this one.
You know full well that toxic convertibles are one of many forms of PIPEs and, just because NIR doesn't show on the list below, doesnt mean that they aren't out providing floorless convertible debentures. You also know that insinuating that the companies on your list of PIPEs should be reported to SEC is ludicrous because you are not differentiating between classic PIPEs and the toxic floorless variety.
Private Investment in Public Equity - PIPE
A private investment firm's, mutual fund's or other qualified investors' purchase of stock in a company at a discount to the current market value per share for the purpose of raising capital. There are two main types of PIPEs - traditional and structured. A traditional PIPE is one in which stock, either common or preferred, is issued at a set price to raise capital for the issuer. A structured PIPE, on the other hand, issues convertible debt (common or preferred shares).
Notes:
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 great for small- to medium-sized public companies, which have a hard time accessing more traditional forms of equity financing.
