littlebrother1492, evidently there are many that either didn't read the posted PIPE Financing information in message #42776, or they didn't understand what they read.
1) Note it clearly states "In a PIPE transaction, investors typically purchase securities directly from a publicly traded company in a private placement." This means, as you've correctly indicated, that the public open market would NOT be used to locate and transact the PIPE private placement shares.
2) It goes on to state "Because the sale of the securities is not pre-registered with the SEC, the securities are “restricted,” and, therefore, cannot be immediately resold by the investors into the public markets." This means, that the shares wouldn't be trading in the public open market, as they would be restricted and therefore CANNOT be resold into the public until after they are registered with the SEC. Since no one has seen a registration statement over this last month, share sales into the public market from a PIPE scenario would NOT be occurring.
Bottom line, PIPEs may be done concurrently with a R/M, but it's securities purchases are done as private placements and the shares are restricted from selling to the public until after a SEC registration. This then disproves the theory that the recent high trading volumes are due to a PIPE. Heck, even the theory of an in-work PIPE being associated with the R/M is just an unfounded rumor at this point.
Since it's obviously not PIPE related, the large trading volumes recently being observed do look like appreciable share dilution. However, no one will be able to confirm this, or the extent, until release of the next financial statement.
Have a good one.
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tob999
Friday, July 06, 2012 5:13:41 AM
Re: None
Post #42776 of 43101
Some more interesting info on PIPE Financing which i think is occurring here on ASYI:
Quote:PIPE Financing
In a PIPE transaction, investors typically purchase securities directly from a publicly traded company in a private placement – an offering of securities made only to a small group of interested buyers. A reporting company that sells securities in a private placement does not pre-register the securities with the SEC. Instead, the company relies on an exemption from registration, typically Rule 506 promulgated under Regulation D of the Securities Act of 1933 (the “Securities Act”). Because the sale of the securities is not pre-registered with the SEC, the securities are “restricted,” and, therefore, cannot be immediately resold by the investors into the public markets. Consequently, the reporting company will usually agree to register the restricted securities with the SEC shortly after the closing of the PIPE transaction. PIPE investors typically require a discount from the market price of the company’s common stock because of this period of illiquidity between the closing of the transaction and the effectiveness of the registration statement.
AI
