|
DOCS® Facility |
Traditional Offering |
PIPE |
Stock price impact |
Neutral impact |
Moderate to severe impact |
Moderate to severe impact |
Pricing of shares |
At the market |
Often at a discount |
Often at a discount |
Warrants |
None |
Occasionally |
Often |
Short sale arbitrage |
None |
Sometime extensive |
Sometime extensive |
Lock-ups |
None |
On sales by issuer and executives |
On sales by issuer and executives |
Issuer controls timing of sales |
Full control |
Not always in issuer’s control |
Not applicable |
Issuer controls timing of capital raises |
Full control |
Not applicable |
Not always in issuers control |
Shareholder approval |
Not applicable |
Not applicable |
Subject to 19.9% cap |
Demands of management’s time |
Minimal |
Extensive, road shows |
Moderate |
Conflicts |
Issuer-only model |
Underwriter represents buyers and issuer |
Underwriter represents buyers and issuers |