RE: Breaking news28 May 2020 23:08
This could go either way short term. PIPE deals can lead to a temporary hit in the sp but long it’s a definite win. The outlook and other factors will also play a part here tomorrow. Long term this has become an even better opportunity for me now.
If anyone is interested in a Real World Example of a PIPE.....
In February 2018, Yum! Brands(YUM), the owner of Taco Bell and KFC, announced it was purchasing US$200 million of takeout company GrubHub stock through a PIPE. In this case, Yum! drove the PIPE to forge a stronger partnership between the two companies to increase sales at its restaurants through pickups and delivery. The added liquidity allowed GrubHub to grow its U.S. delivery network and to create a more seamless ordering experience for customers of both companies. GrubHub also expanded its board of directors from nine to 10, adding a representative from Yum!