Players Network Inc. (fka PNTV)

[Toxic Avenger]

It also provides money to the company to actually execute their plan. His open market buys simply pay off selling shareholders. It does dilute, unlike open market purchases, but as long as the price isn't too discounted, or floating (aka, "death spiral financing"), it usually good for shareholders, especially if the company does not have a lot of working capital.

From the buyer's perspective, the reason for buying restricted shares (making a PIPE investment) usually is a price discount as well as providing needed funds for the company.