NYSE Takes Another Step to Facilitate Capital Raises In Light of Pandemic
On May 14, 2020, the New York Stock Exchange (the “NYSE”) adopted a temporary rule waiving until June 30, 2020 additional key shareholder approval requirements for certain private investments in public equity (“PIPE”) and similar transactions by companies impacted by COVID-19. The new waiver operates by creating a new “COVID-19 exception” to the so-called “20% rule” that is significantly broader than the existing “financial viability exception” and continues a trend of both major exchanges providing incremental additional flexibility to companies that require an immediate cash infusion to weather the COVID-19 pandemic. The new waiver is generally consistent with recent temporary…