Comparison Chart

 

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