PIPE Conference Take-Aways Part II
By David Feldman at 4 December, 2009, 12:15 pm
Following the panel on OTCBB PIPEs, I moderated a panel on cutting edge trends in APOs. We continued the discussion on Form 10s much as on the prior panel. One panelist felt it was just simpler not to have to educate an investor about the benefits of the Form 10, even though those benefits may indeed exist. Others said that it depends on the deal and smart players should be ready to look at both Form 10 and trading shells depending on the needs of the particular transaction, and for what it’s worth I agree.
Our panel talked about shell pricing and all agreed that prices at least have bottomed, and there are anecdotal reports of prices heading up again a bit. We then covered China. A new cool audience response technology introduced by DealFlow told us that the vast majority of attendees felt China will continue to be a major source of RM transactions in 2010. The panelists agreed, that continued government support, more education and the PRC’s still strong economy bodes well for the next year.
We then asked what country will be next? The greatest response was India, and I am seeing that in the market as well. One panelist felt Vietnam also has tremendous potential.
On SPACs, unfortunately virtually all attendees felt that SPACs will not return strongly in 2010. Of course those playing in SPACs hope otherwise, and the fact that 2-3 new filings have been made and a SPAC IPO even completed recently are touted as evidence.
As with the prior panel, we had a discussion about WestPark Capital’s WRASP approach and for the most part very positive views about the approach by panelists.
Finally we talked about our latest advocacy issue as an industry, the hope to reverse Rule 144(i)’s “evergreen” requirement that all former shells’ shareholders cannot sell without registration under Rule 144 unless the company has been current in its filings for the prior 12 months. The burdens it creates were mostly seen as “medium hassle” by the panelists, and none had seen any player shy away from a reverse merger with a shell because of this concern.
All in all a very good panel, and a terrific conference. Heading home!
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