Great post thanks thiopia. Has been an interesting day on the...

Great post thanks thiopia. Has been an interesting day on the CCC forum. I have some background in PIPES myself. Of course it stands for private investment in public equity. There has always been some controversy with these deals, and particularly the trading around them. (Just the fact you know a PIPE is coming means you know the stock is going down, all else being equal). But in itself, the phrase PIPE doesn't imply any wrong doing. The problem for investors with these type of transactions is always one of transparancy as thiopia nicely highlights here. The risk for the public investor is that the group only highlights the good points. For example you could just say no obligation to utilise and no penalties for early termination.