A registered direct offering or (RD) is very similar to a PIPE (Private Investment in Public Equity), except investors receive registered shares of the issuer. As a result, no subsequent registration of the securities issued in the offering is required.
RDs have increased in 2008 and 2009 because the SEC changed its rule to allow exchange-listed (not OTCBB), sub $75M market cap companies that are current in their SEC filings to utilize universal shelf registrations.
Click here to view our presentation on RDs and PIPEs.
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