Replies to post #43117 on Aisystems, Inc. (fka ASYI)

[tob999]

PIPE transactions are also known as a private/direct placement in a public equity. Hope these help! :

PIPE transactions are also referred to as private placements or direct placements in public companies. PIPE transactions are privately negotiated sales of companies’ securities to individual accredited investors or institutional funds. Small and mid-size public companies often use PIPE financing because they can obtain capital from a PIPE transaction faster and cheaper than in a public offering.

For our purposes, we consider PIPEs as any type of Reg D Offering, Shelf Sale, or Equity Line Arrangement. Reg D is an SEC Rule that allows public companies to issue stock privately to a group of accredited investors without the need for public registration prior to the sale. Shelf Sales and Equity Line Arrangements actually require a registration statement to be effective prior to the sale of the stock, technically making them public offerings. We track them as PIPEs because these structures emerged as on offshoot from the PIPE market. 144-A transactions are private convertible debt or convertible equity offerings that allow the investors to resell their securities to other Qualified Institutional Buyers (QIB’s) without registration.

http://www.prlog.org/10034201-why-would-public-company-do-pipe-private-investment-in-public-equities.html