Can someone explain the top 5 lines of example 5? I do not understand whether/how the investor makes money from this deal on Novatel stock. What are the time of original transaction and what are the time the registration statement was filed?
Investors buy for $9 and at the time of registration the shares were selling for $16.48. In less than a month, good deal if you ask me. Whats the issue here?
What are the time of original transaction and what price did investor pay? What are the time the registration statement and what price did investor pay?
I agree they sell shares at 16.48, but what price did they pay, 9 or 8.833?
Does it really matter as long as they are making a profit from the investment? I think thats what they are trying to show us anyway, PIPES buy at low price and sell it off at a higher price. I am not really sure what you are trying to do by getting the original transaction or price and registration details and all that stuff. Probably want to check up with CFAI and see where they get their info. from I guess.
a lot of PIPE guys are now locked up or have had some severe disciplinary actions against them trying to arb them over the last few years. if the CFAI is at all relevant in the marketplace (usually it is), i doubt we see much on PIPE’s. PE firms invest for the long term. HF’s sketchily have arb’ed these, but there are more and more rules and they’re stricter and stricter… harder to be a PIPE player HF these days.