What’s the Deal?

An ATM offering is a follow-on offering of securities utilized by publicly traded companies in order to raise capital over a period of time. In an ATM offering, an issuer sells newly issued shares into the trading market through a designated sales agent at prevailing market prices. These offerings are conducted pursuant to an equity distribution or sales agreement entered into between the issuer and one or more sales agents. The sales agent may act either on an agency (best efforts) or principal (firm commitment) basis; however, more often than not, transactions are undertaken on an agency basis.