Also, next week I will write an article on reverse mergers, which I predict will become a much more common form of financing for high-tech companies. In most PIPE transactions the selling company gets the money upon closing. The investor is locked up until the stock is registered. This is inaccurate. Private placements are alternative investments to the public market.
Private placements can be an excellent vehicle for companies to raise cash.
It is imperative, however, that the company understand what type of deal structure and investor is best for it. Information contained in this newsletter is provided as an information service only. The securities markets are highly speculative areas for investments and only you can determine what level of risk is appropriate for you. Copyright 2001 INT Media Group, Incorporated All Rights Reserved.