In PIPE (Private Investments in Public Equity) transactions, public companies issue stock and bonds directly, and often discreetly, to large institutional investors, rather than raising capital in the stock and bond markets. "PIPEs" details how these deals are done, for what reasons, and with what caveats. About the Editors ix About the Contributors xi Acknowledgments xix Introduction 1(8) STEVEN DRESNER, The PIPEs Report PART ONE I THE BUSINESS OF PIPES 1 Overview: An Emerging Market 9(18) RICHARD E. GORMLEY SG COWEN & CO., LLC 2 The Marketplace: A Statistical Summary 27(26) E. KURT KIM PRIVATERAISE, LLC 3 A Historical Perspective: The Bubble, Converts, and the Birth of Structured PIPEs 53(12) JAMES F. O'BRIEN JR. PROMETHEAN CAPITAL GROUP, LLC 4 The Players: Issuers, Investors, Agents and Regulators 65(12) STEVEN DRESNER AND BRETT GOETSCHIUS The PIPEs Report PART TWO REGULATORY LANDSCAPE AND STRUCTURAL ALTERNATIVES 5 The Law: Legal and Regulatory Framework 77(52) JAMES R. TANENBAUM AND ANNA T. PINEDO MORRISON & FOERSTER, LLP 6 Fundamental PIPEs: Typical Structures and Transactions 129(40) ELEAZER KLEIN SCHULTE ROTH & ZABEL, LLP 7 Registered PIPEs: Registered Direct Transactions 169(18) JOSEPH SMITH FELDMAN WEINSTEIN LLP 8 Litigation Strategies: Managing Litigation Risk and Addressing Other Investor Concerns 187(18) PERRIE WEINER AND EDWARD TOTINO DLA PIPER RUDNICK GRAY CARY US LLP PART THREE DEAL FLOW 9 Managing Risk: Securities Structures, Trading, and Deal Documentation 205(16) STEVE WINTERS GEMINI INVESTMENT STRATEGIES, LLC 10 Due Diligence and Valuation Policy: Caveat Emptor Squared 221(22) STEWART FLINK CRESTVIEW CAPITAL 11 Reverse Mergers + PIPEs: The New Small-Cap IPO 243(18) DAVID FELDMAN FELDMAN WEINSTEIN LLP Afterword 261(6) LAWRENCE R. GOLDFARB AND DANIEL CARLSON BAYSTAR CAPITAL MANAGEMENT Glossary 267(16) Index 283