Option 1: Private Placements or PIPEs ("Private Investment in Public Equity")

A PIPE is when a private investment firm, mutual fund or other qualified investor purchases shares in a company at a discount for the purpose of raising capital. There are two main types of PIPEs - traditional and structured. A traditional PIPE is one in which stock, either common or preferred, is issued at a set price to raise capital for the issuer. A structured PIPE, on the other hand, issues convertible debt (common or preferred shares).

Option 2: Registration Statement with the SEC

A document required by the Securities and Exchange Commission for public offerings of securities. The Registration Statement, required by the Securities Act of 1933, discloses information on the management and financial condition of the issuer, and describes how the proceeds of the offering will be used. The statement also is filed with the appropriate securities exchanges and state securities regulators. Proposed offerings under $500,000 generally are exempt from SEC registration requirements under the 1933 Act.