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My basic understanding of it is that PIPE is a group of rich investors/institutions investing in a public company through private arrangement but how does this apply to SPAC when it's not public yet? Is the PIPE investing in the SPAC itself or the target company?

Update:

PIPE investors to commit $200M concurrent with transaction announcement (from page 4 of the PDF)

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The PIPE investors are likely investing in the SPAC, which is the public company intending to acquire the private target company. As for timing, the PIPE investment might be announced simultaneously with the acquisition announcement. The PIPE investment may or may not be contingent on a successful acquisition.

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    Thanks for the answer. I added a few more details to the question. For this example company (Astra), the PIPE investors will only get shares of the new merged company if the talk goes through? If the talk doesn't go through, then no funding from them? Feb 23, 2021 at 3:23
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    "PIPE investors to commit $200M concurrent with transaction announcement" and "20 million shares at $10" are the relevant statements in the presentation you linked to. It's not clear to me how firm their commitment is. But if the stock price stays well higher than $10, it would make sense for the PIPE investors to invest at the $10 price they negotiated. Feb 24, 2021 at 6:43

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