October 24, 2004
PIPE or SHAFT?
Chuck Talk writes "The practice of PIPE transactions has become a very public phenomenon for companies such as Baystar Capital who have become involved in the dispute between the SCO Group, IBM, Linux distributors and users. Although Baystar would probably prefer not to become involved in anything quite so public, it seems they found themselves in the spotlight with their investment of $50 Million dollars being used as PR material by the SCO Group executives. It was the very vocal nature of the SCO Group executives that eventually led to the dissolution of that PIPE transaction with the settlement coming about in the form of a pittance of the initial investment dollars ($13 Million in cash) and some 2 million shares of common stock (restricted by the settlement to only being able to be sold at some 10% of daily trading volume)."