PIPE Funds Set Up Trade Group
By David Feldman at 22 May, 2009, 12:07 pm
The Wall Street Journal reported earlier this week that a group of PIPE hedge funds, led by NIR Group’s Corey Ribotsky, have established the long-named Direct Funding Preservation Alliance or DFPA to act as an advocate for their industry.
PIPEs have mostly been maligned by the press, and mostly undeservingly. Many great deals have been done by exciting growth companies through PIPEs when no other financing avenue was available. As in anything Wall Street, there are a handful of unsavory types, but most of them went away after a few SEC and class action cases back in 2002-2003.
There was an attempt several years ago to do the same thing, but after one meeting many present felt it was much like “herding cats,” and the potential costs of such an organization concerned some. Good luck to the new group, hopefully they will work hard to point out the good things PIPEs have done for growing companies throughout the past decade.
Hi David:
I think we will succeed. I am a trial attorney and a relentless lobbyist. I have been reading all of your articles. I think as an outsider to the industry, I can bring everyone together for the common good. I’m hoping we can get together in order to talk more about the organization I am putting together and my strategy.
David Schwartz, Founder of the Direct Funding Preservation Alliance
Sure David, get in touch and happy to chat.
David
I am a shareholder of a private small biotech company with market focus for over 14 years in human in vitrofertilization, and now in stem cell area. We are looking to become public for the reasons of rewarding excutives, liquidity, and possible financing of some very exciting potential projects that we can not afford at this time and a more secure future for the company I have read your book on Reverse Mergers and watched your you-tube presentation in your website.
What would you advise if we decide to go through the pathway of creting one public shell from scrach…and then reverse merge?
One of of the major sharehoders has the idea of creating the public shell on its own and then invite the rest in….
Any advise would be greatly appreciated…we will be looking to hire profeesional help once we decide that we are going to take the path of becoming public. During the process of barinstroming the right pathways would you be available for consulting and would your rate would be? 2 out of 3 shareholders live in NJ, CT area and I am in Toronto area.
Thanks
monica
Monica, look for an email from me!
David