Comparison Chart

As companies look to diversify their sources of capital, and expand their financing toolbox, how do they know if an ATM is an appropriate strategy? One place to start is our quick comparison with traditional stock offerings.

	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