ATM: A forward-thinking strategic approach to financing
At-the-market (ATM) offerings provide an efficient means of raising measured amounts of equity capital over time, by enabling a publicly traded company to tap into the existing secondary market for its shares on an as-needed basis. Under our DOCS® (Dynamic Offering of Common Stock) ATM financing facility, an exchange-listed company incrementally sells newly issued shares into the trading market through a designated broker-dealer at prevailing market prices, rather than via a traditional underwritten offering of a fixed number of shares at a fixed price all at once.
The offering of newly issued shares into the existing trading market can result in a lower cost of capital compared to more traditional financing approaches.
When managed effectively by a seasoned and service-oriented organization such as Brinson Patrick, the shares are sold at the prevailing market price with no warrants and no offering discount.
An idea whose time has come
The adoption of ATMs has grown significantly over recent years, as CFOs and CEOs gain a better understanding of what a flexible and intelligent capital-raising strategy it can be. Whether alone or in conjunction with other financing approaches, we expect at-the-market offerings like our DOCS® ATM to remain an effective, long-term, follow-on capital-raising strategy.