Fasken is pleased to release its 2022 Annual Canadian PIPE (Private Investment in Public Equity) Deal Point Study (PDF , 14.7 MB).
Our fourth annual Canadian Private Investment in Public Equity (PIPE) Deal Point Study offers market insights from our review of Canadian PIPE deals in 2022 that had a value greater than $10 million and whose transaction details are publicly available.
We reviewed these PIPE deals for (i) target and investor characteristics, the applicable industry, target market capitalization, and transaction amount, (ii) attributes of the acquired securities, and (iii) the investor and issuer rights granted pursuant to the deal.
This fourth edition (i) focuses on PIPE transactions completed in the 2022 calendar year in Canada, (ii) compares the results with those seen in our 2019, 2020 and 2021 studies, (iii) highlights trends within PIPE transactions over the past four years, and (iv) looks ahead to the remainder of 2023.
The 2022 Deal Point Study yielded notable trends, including:
- The majority of the deals, approximately 78%, involved common equity.
- The most prevalent rights negotiated were dilution protection rights (61% of deals reviewed).
- Board nomination, registration and information rights were also common (in each case, in approximately 44% of deals reviewed).
- The least common rights granted were redemption rights at the option of the issuer and redemption rights at the option of the securityholder (in each case, in approximately 22% of deals reviewed).
- The average value of deals remained relatively consistent at $94.70 million (the average transaction value over 2019 to 2022 being $99.36 million).
For related insights regarding the ownership of minority interests in public companies, please see Fasken's Shareholder Activism in Canada: The Legal Framework and Directors' Handbook: Shareholder Activism guides.
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