Private investment in public equity (PIPE) transactions involves a private placement of securities by an already-public company, with the issuer committing to register the securities for resale promptly after the private placement is completed. Although variations exist, in the most standard PIPE transaction the investors in the private placement enter into an irrevocable commitment to purchase securities at a fixed price; but the investors are not required to close and fund their purchase until after the issuer has filed a registration statement covering resales of the securities sold in the private placement and the registration statement is about to become effective.

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