At-the-Market Offerings: A Good Option When Volatility Is High

Following years of generally low market volatility, public companies are now navigating an uncertain and unprecedented market environment as a result of the global COVID-19 pandemic. In this new environment, many public companies are focused on diversifying their capital raising options. Companies that may need to raise capital as a result of abrupt liquidity and capital resource constraints should consider the option of setting up an at-the-market (ATM) offering program.  Whether a public company is seeking to raise additional capital, repay debt, fund the purchase price for a small acquisition, or facilitate a liquidity opportunity for an existing stockholder, an ATM offering can be an efficient approach.