Overview
This guide provides a high-level overview of private investments in Canadian public equities (PIPE), including common areas of negotiation, strategic rationale, typical deal terms and relevant regulatory and stock exchange approvals involved in such transactions. We invite you to contact the contributing editors of this guide or any other member of our Corporate practice group to discuss PIPE transactions.
A PIPE is a transaction between a public company and a qualified investor that involves a private placement of securities by the company to the investor. PIPEs are usually a significant, but still minority, investment in a company and are frequently accompanied by a negotiated package of investor rights and protections.
PIPE transactions can vary significantly in structure. In most cases, a PIPE will involve the issuance of common equity, although preferred equity, convertible securities, warrants or a combination of such securities may also be used.
There is no single blueprint for a PIPE. Each is the product of deal-specific objectives and dynamics. This guide summarizes common considerations and themes that we regularly encounter in negotiating PIPE transactions.
Authors
Partner, Corporate, Toronto
Partner, Corporate, Toronto
Partner, Corporate, Toronto
