Practical Law Glossary Item 5-382-3691 (Approx. 2 pages)
Glossary
PIPE Transaction (PIPE)
PIPE stands for "private investment in public equity." A PIPE transaction is a transaction in which a public company issues restricted equity securities in a private placement to investors (usually at a discount to the market price of its common stock) and does one of the following:
Has a registration statement for the investors to resell the restricted securities declared effective at the closing.
Agrees to file a registration statement for the resale of the restricted securities and have it declared effective as soon as possible after the closing.