Why We Invest in PIPEs

We fund publicly-traded operating companies that are evolving into becoming multinational corporations. If this plan makes sense to you, join us.

PIPEs are Private Investment in Public Equities. Our members buy discounted Private Placement shares in foreign public companies in the United States for these sound reasons:

1. Liquidity: Investing in private companies limits the Angel Investor’s options. It’s very unlikely that the Angel Investor can sell his or her investment to another investor. Should the private company have unexpected problems, the Angel Investors must either risk more money or accept the loss of the existing investment. Private investments lack liquidity.

PIPEs offer investors liquidity. If there are unexpected problems, PIPE investors can sell their shares and often make a profit, even if the company is facing unexpected business challenges.

2. Discount: Our members get a discount from the prevailing share price to fund the Private Placement.

3. Leverage: Usually the share price of any stock is a multiple of the balance sheet value of that company. Thus, early investors in public companies see their investment grow faster than it would in a private company.

4. Costs: Corporate operating costs are far lower outside of the United States. Executives are often paid one-tenth of their American counterparts. The lower operating costs means that more profit can be reinvested in corporate growth.

5. We invest in PIPEs that have a specific purpose: Our members buy stock in companies that intend to grow their company by acquisition. Their purpose in going public is to use their strong sustainable share price and cash to buy cash-producing assets. Their exit strategy is to sell their company to a larger multinational corporation at Market Capitalization (Share price multiplied by the issued shares). In such companies, the odds of making money are far greater than simply playing the Market.

We believe our members operate with far less risk and a greater profitpotential than any other group of small capital investors speculating in the Market. However, investing in anything is risky. There can’t be any guarantee of profits. Our members must determine the risk of each investment and accept those risks until they recover their risk capital by the sale of some of their shares in the company.

If PIPEs seem too tame, the Global Village Investment Club isn’t right for you. If it’s gambling excitement not profit that you are seeking, go to Las Vegas or Atlantic City.