PIPE Transactions - Morrison Foerster

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What are "PIPEs"? A PIPE (Private Investment in Public Equity) refers to a private placement of securities of an already
PIPE TRANSACTIONS 2016

What are "PIPEs"? A PIPE (Private Investment in Public Equity) refers to a private placement of securities of an already-public company that is made to selected accredited investors (usually to selected institutional accredited investors). In a typical PIPE transaction, investors enter into a purchase agreement that commits them to purchase securities and usually requires the issuer to file a resale registration statement covering the resale from time to time of the privately purchased securities.

Number of PIPE Transactions 1199

1172 1114

Dollars Raised in PIPE Transactions $51.6 billion

2016

$41.4 billion

2015

1098

$34.5 billion

2014

1066

$23.8 billion

2013 2012

2013

2014

2015

2016

$36.0 billion

2012

Instruments Issued in PIPE Transactions in 2016 Common Stock...67.72% Preferred Stock: Convertible...9.92% Preferred Stock: Non-Convertible...0.00% Debt: Convertible...11.18% Debt: Non-Convertible...2.34% Other: Convertible...< 0.01% Prepaid Warrant...2.84% Equity Line...5.84% 67.72% Unknown...< 0.01%

Average Deal Size

9.92% 11.18% 2.34% 0.001% 2.84% 5.84%

$43 million

0.001%

Top Five Most Active Sectors

Biotech: Biomedical/Gene

Pharmaceutical & Related

Mining & Related

Metals, Minerals & Stones

Energy: Oil & Gas

14.0%

12.3%

8.9%

8.4%

7.7%

The information provided herein does not constitute legal advice and should not be acted upon; always obtain specific legal advice based on particular situations. The views expressed herein shall not be attributed to Morrison & Foerster, its attorneys or clients. Data Source: PrivateRaise ©2017 Morrison & Foerster LLP | mofo.com

For more information about PIPE transactions, see our FAQs on PIPEs: https://goo.gl/7PBlKD