-Management to Hold Conference Call at 10:00 AM (ET) Today-
NEW YORK--(BUSINESS WIRE)--May. 15, 2012--
Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM) (the “Company”)
today announced the following business and strategic developments.
The Company intends to effect its name change to Direct Markets Holdings
Corp. on June 1, 2012. The Company expects to begin trading on NASDAQ
under a new ticker symbol, “MKTS”, as soon as practicable thereafter.
The Company first announced its intent to change its corporate name in
conjunction with the introduction of the DirectMarkets platform in
February of this year and this change was approved by stockholders at
the Company’s May 4, 2012 annual meeting of stockholders.
When the Company unveiled DirectMarkets at the Trade Tech 2012
Conference in March, it intended for Rodman & Renshaw, LLC, the
Company’s broker-dealer affiliate, to be the only investment bank to
effect securities transactions utilizing the platform. Following the
introduction of the DirectMarkets platform, multiple potential users and
strategic partners expressed their excitement and interest regarding the
DirectMarkets initiative. However, the Company also received largely
uniform feedback that the DirectMarkets platform should be available for
all investment banks to use to service their issuer and investor
clients, and that limiting it to any one investment bank would inhibit
the widespread adoption of the DirectMarkets platform.
Following a careful review of its strategy and business model for the
DirectMarkets platform, the Company has determined that making the
platform “broker-neutral” and allowing public companies to select the
investment bank of their choice to effect their securities transactions
on the platform will maximize the potential of the DirectMarkets
business. The Company has also concluded that remaining affiliated with
one specific investment bank will hinder its ability to implement the
“broker-neutral” strategy and will limit the commercialization of the
DirectMarkets platform. As a result of this strategic shift, the
Company’s principal business moving forward will focus on developing
financial technology applications and operating the DirectMarkets
platform, which the Company believes will over time generate greater
value for its stockholders than its legacy investment banking focused
The DirectMarkets platform is an automated state-of-the art electronic
transaction platform to directly link existing public company issuers
and investors seeking to transact primary offerings of securities.
Investment banks will utilize the DirectMarkets platform to
electronically effect certain securities transactions for their issuer
and investor clients. The DirectMarkets platform will also aggregate and
provide data regarding public companies, and will allow public companies
to distribute their public relations and investor relations information
utilizing the DirectMarkets platform. Users of the DirectMarkets
platform, which will include public companies, investment banks and
institutional investors, will utilize and access the DirectMarkets
platform pursuant to a license arrangement with the Company.
In conjunction with the implementation of the Company’s new business
strategy, the Company’s board of directors has appointed Kevin Lupowitz
as Chief Executive Officer of the Company effective September 1, 2012.
Effective immediately, Mr. Lupowitz will become a member of the
Company’s board of directors. Mr. Lupowitz presently is the Chief
Executive Officer of Direct Markets, Inc., the Company’s subsidiary that
has been developing the DirectMarkets platform. Prior to joining the
Company in December 2011, Mr. Lupowitz was the Chief Information Officer
at FXall, a leading electronic foreign exchange platform. Previously, he
was a founding employee at Liquidnet, the global institutional trading
network, where he was also Chief Information Officer. The Company’s
current Chief Executive Officer, Edward Rubin, is expected to remain in
that position through August 31, 2012, to guide the Company’s transition
As a result of the Company’s repositioning to become a technology
focused business, General Wesley Clark has stepped down as Chairman and
a member of the Company’s board of directors. Anthony Sanfilippo has
also stepped down from the Company’s board of directors, but will remain
the Company’s President. The Company expresses its deep gratitude to
General Clark for his years of service and leadership.
Effective immediately, Winston J. Churchill, who joined the Company’s
board of directors in 2007, has been appointed Chairman of the Board.
Mr. Churchill has many years of experience investing in emerging growth
companies in various segments of the high tech space, and we are
grateful to be able to continue to benefit from his insights, guidance
and leadership. Since 1996, Mr. Churchill has been the managing general
partner of SCP Partners, which manages several venture capital funds.
From 1993 to the present he has been the co-chairman of CIP Capital
Management, Inc., which manages a “small business investment company,”
as defined by the National Association of Small Business Investment
Companies, which also invests primarily in technology companies. Mr.
Churchill received a BS in Physics, summa cum laude, from Fordham
University in 1962, an MA in Politics, Philosophy and Economics from
Oxford University, where he was a Rhodes Scholar, in 1964, and a JD from
Yale Law School in 1967. He is a Trustee Fellow of Fordham University
and a member of several other public company boards in addition to the
Company, as well as a number of private companies and non-profit
In the coming months, as the Company prepares to commercialize the
DirectMarkets platform, it expects to expand its board of directors to
include members with experience in disciplines related to the
DirectMarkets business, including the financial technology sector, to
provide expertise and leadership in these areas.
As a result of the Company’s new business strategy of providing
technology solutions to the financial services industry, and to maximize
the value of its legacy investment banking business, the Company is
assessing and exploring strategic alternatives for the Company’s
investment banking business.
Commenting on these developments, Kevin Lupowitz stated, “Since joining
the Company, I have guided the development of the DirectMarkets platform
together with an experienced team of financial technology professionals
whom we have recruited. The support that we have received from the
Company’s founders and board has been unwavering. The DirectMarkets
platform will be transformational to the capital raising process, most
notably the primary offering process. I look forward to taking over the
helm of the Company and guiding the successful commercialization of our
Conference Call Information
In conjunction with this release and the Company’s earnings release that
was issued earlier today, a conference call will be held at 10:00 AM
Eastern Time on May 15, 2012, hosted by Mr. Edward Rubin, Chief
Executive Officer; Mr. David Horin, Chief Financial Officer; and Mr.
Kevin Lupowitz, Chief Executive Officer of Direct Markets, Inc.
Investors and analysts can participate in the conference call by dialing
1-877-407-9210 (United States) or 1-201-689-8049 (International).
The conference will be replayed in its entirety beginning at
approximately 1:00 PM on May 15, 2012, through to 11:59 PM on May 22,
2012. If you wish to listen to the replay of this conference call,
please dial 1-877-660-6853 (United States) or 1-201-612-7415
(International) and use Account #286, Conference #394442.
The conference call will also be simultaneously broadcast live over the
Internet, as well as for replay, and can be accessed through the
webcasts and presentations tab of the investor relations section of the
Rodman & Renshaw Capital Group, Inc. website located at www.rodm.com.
Please allow some time following the completion of the conference call
to access the archive of the webcast. Allow for time prior to the
conference call webcast to visit the website and download the streaming
media software required to listen to the Internet broadcast.
About Rodman & Renshaw Capital Group, Inc.
Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM - News) is a holding
company with a number of direct and indirect subsidiaries, including
Direct Markets, Inc. and Rodman & Renshaw, LLC. For more information
visit Rodman & Renshaw on the Internet at www.rodm.com.
About Direct Markets, Inc.
Direct Markets, Inc. will operate an automated state-of-the-art
electronic transaction platform to directly link existing public company
issuers and investors seeking to transact primary offerings of
securities. The DirectMarkets platform will bring unprecedented,
cost-efficient access to the capital markets into the C-Suite of public
companies and bypass certain traditional roles typically held by
investment banks that presently control the transactional process. Both
investors and issuers will benefit from 24/7 seamless access to the
DirectMarkets platform through a graphical user interface (GUI)
accessible via a desktop or laptop computer, as well as mobile smart
devices such as tablets or smartphones. For more information, please
About Rodman & Renshaw, LLC
Rodman & Renshaw, LLC is a full-service investment bank dedicated to
providing corporate finance, strategic advisory and related services to
public and private companies across multiple sectors and regions. The
company also provides research and sales and trading services to
institutional investors. Rodman is the leader in the PIPE (private
investment in public equity) and RD (registered direct offering)
transaction markets. According to Sagient Research Systems, Rodman has
been ranked the #1 Placement Agent by deal volume of PIPE and RD
financing transactions completed every year since 2005.
MEMBER FINRA, SIPC
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements regarding future
events and financial performance including, but not limited to the
timing and success of the roll-out of the DirectMarkets platform. In
some cases, you can identify these statements by words such as “may,”
“might,” “will,” “should,” “except,” “plan,” “intend,” “anticipate,”
“believe,” “estimate,” “predict,” “potential,” or “continue,” the
negative of these terms and other comparable terminology. These
statements involve a number of risks and uncertainties and are based on
numerous assumptions involving judgments with respect to future
economic, competitive and market conditions and future business
decisions, all of which are difficult or impossible to predict
accurately and many of which are beyond the Company’s control. There are
or may be important factors that could cause our actual results to
materially differ from our historical results or from any future results
expressed or implied by such forward looking statements.
These factors include, but are not limited to, those discussed under the
section entitled “Risk Factors” in our Annual Report on Form 10-K, filed
March 15, 2011, which is available at the U.S. Securities and Exchange
Commission website at www.sec.gov.
The forward-looking statements in this press release are based upon
management's reasonable belief as of the date hereof. The Company
undertakes no obligation to revise or update publicly any
forward-looking statements for any reason.
© 2012 Rodman & Renshaw, LLC All rights reserved.
Renshaw, the Rodman & Renshaw logo and Rodman Interactive Online are
trademarks or registered trademarks of Rodman & Renshaw, LLC in the
United States and other countries.
Source: Rodman & Renshaw Capital Group, Inc.
Rodman & Renshaw Capital Group, Inc.
Chief Financial Officer
for Rodman & Renshaw and DirectMarkets