Can anyone who works in either finance or accounting please explain to me what the difference is between a PIPE financing and a Registered Direct offering.
It seems to me that both involve investors purchasing equity in a Company at a premium to closing price? I'm not sure I see much difference between the two?
Is the only difference that an RD involves shares already registered, where as a PIPE involves previously unregistered shares?
Anything else?
I've been out of the business for a couple years, but on the technical side you are right- unregistered for PIPEs and registered for RDs. Back in the day you would see both going out at a discount, with a higher discount on PIPEs due to the liquidity issue of the hold period until registration. Registered directs are generally considered a better form of alternative financing, but I'm not a big fan of either due to some of the stuff that goes on around them.
I have no idea why you're looking on LR for this, but I hope it helps.
i think you meant a discount to the closing price.