Selling 'Off The Shelf'
Should you choose to list your company on an exchange, there are many sources of new money for any company successfully following its stated business plans and presenting a picture of growth.
Regulation 'D' - Exempt Direct Private Placement of new issue shares to accredited investors and institutions at a discount to the current listed public exchange market price. This procedure is known as Public Investment in PrivateEquity or "PIPE" financing. PIPE investors generally agree to have a certain volume of shares 'put' to them at the company's option at a set interval while agreeing to hold the shares so issued for a certain period of time with registration rights at the end of that holding period.
PIPE investors are usually more reasonable in their terms than so-called Angels and Venture Capitalists who often want the entrepreneur's blood and a lien against the founder's shares. PIPE investors are useful, reliable partners in growth and ongoing finance if one carefully chooses such associates with the aid of a professional advocate like Sirius.
A regulation 'S' sale of shares to brokers offshore, especially to European investment banks at a PIPE sort of discount can provide an enterprise with true long-term shareholders inasmuch as Euro-Institutions consider six years to be a short-term hold. With performance on the part of the company, this is a well that generally takes a long time to run dry.
