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 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.
