PIPEs
A major expansion of our Contingent Equity Facility Program is under way and is being made available to the TFG Members and our Affiliates.
TFG will seek to identify well-managed specialty project developers seeking equity in a programmatic investment structure for mining, infrastructure and renewable energy project finance transactions.
Continue reading about Expansion of the Contingent Equity Facility Program
There are a number of pros and cons to this method of raising funds, some of which we have touched on previously. However, let us examine the concept of variable pricing versus risk in a given venture and compare this to the traditional IPO or any subsequent rights issue: For companies, which operate in highly [...]
Continue reading about So when does it make sense to use an Equity Line?
Although the main emphasis and reason for obtaining a Contingent Equity Facility is for the company to balance its working capital requirements with timely sales of new shares, rather than a large one-time share issue, where cash may be sitting idle for a considerable length of time, we have also encountered other applications. Co-operation opportunity [...]
Continue reading about Unusual Applications of the Contingent Equity Facility
Pre-emptive rights for existing shareholders to buy additional shares issued by the company, they have invested in, are statutory rights in most European countries. In order to secure a substantial new issue based on pre-emptive rights, the company may have to place the new shares at a substantial discount compared to the prevailing market price. [...]
Continue reading about Pre-Emptive Rights and the Contingent Equity Facility
As we have mentioned in a previous post, the Contingent Equity Facility is a very effective instrument in the current market as a means of finance. There is however, a great deal of misconception by executives when the subject of a PIPE is first raised. It is true that, sometimes, hedge funds investing in PIPEs [...]
Continue reading about Death Spirals and the Contingent Equity Facility
Bio-tech plays by a different set of public market rules compared to other investment opportunities. Many of the biotech companies got public in the first place because of easy investment funds. The development within biotech is presently under pressure as a result of the financial crisis. At the moment it is important to think of [...]
Continue reading about Bio-Tech Companies and the Contingent Equity Facility
A PIPE (private investments in public entities) is a private transaction between a single or a limited number of investors and the target company, which is listed on a stock exchange. This feature distinguishes the transaction from a public rights offering. The investor(s) and the target company enter into a highly negotiated agreement setting forth [...]