Private Investments in Public Equities (PIPE)

A PIPE is a purchase by a private investment firm, high net worth individuals, or other qualified investors of stock in a company. Often times the purchased stock is discounted to the current market value per share for the purpose of raising capital.

There are two main types of PIPEs, traditional and structured. A traditional PIPE is one in which, either common or preferred stock is issued at a set price to raise capital for the issuer. A structured PIPE, on the other hand, refers to issuance of convertible debt.

A PIPE is popular due to the relative efficiency in time and costs, compared to more traditional forms of financing such as secondary offerings. In a PIPE offering there are less regulatory issues with the SEC and there is often no need for an expensive roadshow, lowering both the costs and time it takes to receive capital. PIPEs are great for small- to medium-sized public companies, which have a hard time accessing more traditional forms of equity financing.

About Floyd Associates

Floyd Associates is a privately held consulting firm with expertise in corporate finance, business strategy, and mergers and acquisitions. Our expert team advises companies of various sizes on capital raising instruments, optimal capital structures, and formation of strategic alliances. Capitalizing on more than 10 years of experience, the Company offers complete solutions customized to meet the specific needs of each of its clients. The Company intends to form long lasting relationships with its clients and to maximize shareholder value through optimization of capital structure and business planning. Solutions include equity financing, business expansion plans, global corporate finance solutions, and international trade strategies.

Forward Looking Statements

Except for historical information contained herein, the statements in this news release are forward-looking statements that involve known and unknown risks and uncertainties, which may cause the Company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.

Contact:
Nima Montazeri
info@floyd-associates.com

Source: Floyd Associates