Buzz Archive:
New Plumbing for PIPEs

by John Hempill, Morrison & Foerster, 11/29/2007

Anyone with kids knows that the strangest things can end up in your drains - I once had my plumbing backed up by a Spauldeen (which, for those of you not residing in one of the four outer boroughs of New York City, is a handball). Around August 2006, the Securities and Exchange Commission, or SEC, decided to plug up microcap PIPEs (the acronym for "Private Investment in Public Equity"). Specifically, comments began appearing in comment letters for resale registration statements filed by issuers who could not use the short-form registration statement on Form S-3 for primary offerings.