|Print Page Close Window|
|Rodman & Renshaw Launches DirectMarkets: First-Ever 24/7 Automated Electronic Transaction Platform to Link Issuers with Investors for Primary Offerings of Securities by Existing Publicly-Traded Companies|
— Kevin Lupowitz Recruited as CEO of DirectMarkets —
— Management to Hold Conference Call at
With its many features, the DirectMarkets platform will empower issuers to sell shares (covered by a shelf registration) directly into the secondary market and to complete funding transactions at a fraction of the current cost. Using the same platform, investors will be able to directly contact issuers, with effective shelf registrations in place, to indicate their interest in buying that issuer’s stock, effectively gaining the ability to accumulate stock positions in a more cost-effective manner than through on-going open market purchases.
Suitable for companies listed on
To lead DirectMarkets, Rodman has recruited
By providing added efficiencies that link issuers with purchasers of
securities, while substantially reducing related fees and expenses
because of the limited role of intermediaries, the DirectMarkets
platform is positioned to be the catalyst for a major paradigm shift in
the securities industry. As
The DirectMarkets platform will complement Rodman’s various other business activities, including its market making, sales & trading, research, investment banking, and conferences. In assessing the multiple advantages, Mr. Lupowitz added, “I look forward to heading DirectMarkets. Rodman already has a solid foundation of thousands of potential issuers and investors. DirectMarkets will capitalize on those existing relationships to provide issuers with efficient access to market demands. We will have a unique competitive advantage as the platform gains traction and we begin the process of easing issuers and investors through the transition from manual transactions to our new automated platform.”
In conjunction with the launch of DirectMarkets,
DirectMarkets Key Features
The DirectMarkets platform’s functionality will include:
The DirectMarkets platform was developed by Rodman over the last several years, building on the expertise that it has obtained in completing more than 580 financing transactions for public companies since 2002. During the last decade, capital-raising options and alternatives for public companies have evolved from traditional follow-on offerings to RDs, ATMs and CMPOs. Through this evolution, the issuer has gained more influence over the capital-raising process by acting on shorter notice and reducing its exposure to market volatility during the life of a deal. The DirectMarkets platform is the next and logical evolutionary step in empowering the issuer and bringing access to the capital markets directly into the C-Suite of public companies through an electronic interface linking public company issuers with investors.
Patents have been filed and are being prosecuted in
In recent years, disintermediation has fueled cost savings, introduced efficiencies, and sparked new business models both within the financial services community and across many other industries. Secondary trading of securities has been revolutionized through automation and technology applications resulting in significantly reduced costs, execution efficiency and disintermediation with market participants gaining direct access to counterparties. Companies such as Instinet, ITG and Liquidnet led the way with industry-changing applications and platforms. However, this disintermediation, and the resultant efficiencies, have largely bypassed the market for primary offerings of securities by existing publicly traded companies, where transactions are still predominantly handled manually, much as secondary trading transactions were in years past. DirectMarkets aims to bring the market for primary offerings of securities by existing publicly traded companies into the 21st century with automation, connectivity and disintermediation, resulting in increased efficiencies and significantly reduced costs.
DirectMarkets’ targeted market is currently suited for transformation.
The market is large and highly fragmented. While Rodman is the leader in
the PIPE and RD transaction markets, having been ranked the #1 Placement
Agent in terms of the aggregate number of PIPE and RD financing
transactions completed every year since 20051, our market
share still only amounts to approximately 8.3% of transactions completed
and represents only 4.6% of gross dollars raised through these
offerings. The total PIPE and RD marketplace for U.S. public companies
Given the size of the market for primary offerings of securities by existing publicly traded companies and its fragmented state, Rodman is convinced that directly connecting issuers and investors through a low-cost, efficient and proprietary automated platform presents DirectMarkets with a very significant market opportunity.
Conference Call Information
In conjunction with this release, Rodman & Renshaw will hold a
conference call on
The conference will be replayed in its entirety beginning at
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
About Rodman & Renshaw Capital Group, Inc.
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
Rodman & Renshaw Capital Group, Inc.