PIPEs are an important source of financing for many companies, yet controversial due to their harsh contractual structures. We present a detailed study of how PIPE contracts allocate contingent cash flow rights between investor and issuer. We find that issuers advised by high-ranking...

The SEC launched in 2002 enforcement actions against investors involved in PIPE (Private Investments in Public Equity) transactions. We describe the legal ramifications of this enforcement initiative, and document dramatic contemporaneous market-wide changes in the contractual structure of...

PIPEs are an important source of financing for many companies, yet controversial due to their harsh contractual structures. We present a detailed study of how PIPE contracts allocate contingent cash flow rights between investor and issuer. We study the role of placement agents in PIPE contract...

In 2002, the SEC launched enforcement actions against investors involved in PIPE (Private Investments in Public Equity) transactions. We describe the legal ramifications of this enforcement initiative, and document dramatic contemporaneous market-wide changes in the contractual structure of...

In 2002, the SEC launched enforcement actions against investors involved in PIPE (Private Investments in Public Equity) transactions. We describe the legal ramifications of this enforcement initiative, and document dramatic contemporaneous market-wide changes in the contractual structure of...

PIPEs are an important source of financing for many companies, yet controversial due to their harsh contractual structures. We present a detailedstudy of how PIPE contracts allocate contingent cash flow rights between investor and issuer. We study the role of placement agents in PIPE contract...