Catalyst is a full service investor relations consultancy with deep experience and achievement.
We deliver individually crafted counsel, outreach and solutions for each client.
Investor Relations Counsel
Positioning & Valuation
Guidance & Expectation Management
Perception Research & Feedback
Capital Markets Guidance
Crisis and M&A Strategy & Communications
Investor Outreach / Relationships
Buy-side Investor Targeting/Outreach
Sell-side Analyst or Banker Targeting/Outreach
Retail Investor Outreach
Media & Social Media Targeting & Outreach
Shareholder Management – Institutional & Retail
Images & Video
CASE STUDIES & RESULTS
Retained as IR counsel in Jan. 2000, after Marvel’s exit from bankruptcy
Marvel characters acquired out of bankruptcy by a toy company
Cap Structure: $145M market cap + $250M Preferred stock + $200M high yield debt
Business was largely toys, along with licensing and publishing – no films
Wall Street had forgotten Marvel after 4 years of bankruptcy proceedings
Marvel retooled itself: outsourced toy operations, focused on licensing, refreshed characters and grew comic publishing, benefited from licensed film productions and ultimately secured non-recourse funding to initiate its own productions
Served Marvel 10 years as outside IR counsel.
Strategic counsel on rebuilding awareness, building awareness outside toy sector, balance sheet enhancements and array of issues
Reinitiated sell-side & buy-side outreach – focusing on leisure, consumer, media & entertainment investors
Shaped Street perceptions of evolving Marvel; secured increasing transparency and management access to support Wall Street interest
Developed focus/respect on impressive & unique operating discipline & cost consciousness
Led several crisis management situations around deals, litigation, product liability, etc.
Built base of 17 covering Sell-Side analysts
Ultimately Marvel profile attracted acquisition by Walt Disney in Aug. 2009; deal closed Dec. 2009 at $4.4B equity valuation.
(Above: Marvel share price chart. Catalyst IR began counsel in 2000.)
Intelligroup, a Pink Sheet-traded IT services consulting firm that focused on SAP & Oracle ERP solutions, retained Catalyst* in July 2008 to help it expand awareness and liquidity within Wall Street under a new management team.
History of poor management, performance & executive turnover
Stock was ~ $1.65 per share at inception, with limited trading volume
Solid balance sheet–Intelligroup was a value/turnaround story with growth and sector expertise/focus.
Secured Intelligroup’s transfer to OTC BB, required market maker sponsor
Launched proactive communications with releases & conference call
Built investor database and sent all communications via e-mail
Initiated marketing program focused on IT services analysts and “smicro” tech investors
Landed conference opportunity in NYC to introduce story
Secured coverage from independent research firm, Singular Research
Secured nationwide non-deal roadshow under sponsorship of Susquehanna
Secured participation in Alliance Bernstein IT Services Panel
Focused investors on Intelligroup’s excellent bottom-line management during a downtrend in IT services spending (EPS rising while revenues decreasing double digits)
ITIG attracted $4.65 cash bid from NTT Data – a 182% rise in share price over 2 year *predecessor of Catalyst Global
IntegraMed, a provider of management, operational and financial services to fertility clinics, retained Catalyst Global (predecessor) July 2007 to expand IR communications/outreach.
The first step was to execute an M&A communications plan around the Company’s imminent transformational acquisition of a network of vein clinics.
Proactive campaign to assuage mounting investor skepticism as the transaction encountered many post-deal integration costs and challenges
Tempered short-term expectations and communicated the critical importance of strategic diversification to Company’s long-term prospects
Developed revised reporting to “break-out” investments that were sapping P&L EPS
Obtained research coverage from four sell-side healthcare services analysts; secured conference presentation berths by over 6 different firms.
Supported strategy, communications and shareholder relations around 2.5M share primary offering led by Piper Jaffray and Dougherty & Company (played integral role in convincing management to reduced deal size because of outsize dilution).
Sagard Capital acquired IntegraMed in September 2012 for $170M in cash: 85% premium to market cap at the time CG was retained.
REX American Resources Corporation
REX American Resources Corp. started as REX Stores, a consumer electronics retail store chain. The company had 200 stores across 36 states in 2006 when it began investing in synthetic fuel partnerships and later ethanol production facilities as part of long-term strategy to exit the consumer retail business it saw as being a broken business, particularly for smaller players.
From 2007 through 2009 REX completely divested all retail holdings and used proceeds to make further investments in ethanol plants, several of which were completed and came on line with production, to complete its transformation into an alternative energy company.
During long periods there was substantial uncertainty about both the unwinding of the old business as well as the potential of the new bio energy business.
The Ethanol business suffered a huge meltdown principally due to failed hedging by most of the leading producers – causing them to file Chapter 11. Though REX had not done this, it suffered from the industry malaise its peers had caused.
CG (predecessor) led ongoing communications of the strategic rational behind its transformation and the substantial financial discipline the Company was using to preserve its assets during the transition. Thought the future was not certain, the Company communicated repeatedly its discipline as well as its interest in repurchasing stock at a deep discount to tangible book value.
As the new business came to fruition, CG identified and facilitated introductions with analysts in clean tech/bio energy sector and ultimately secured coverage from two analysts as well as related conference presentation opportunities.
CG pushed for a name change and symbol change to better define the Company’s actual business and focus, and then executed the communications plan to launch the new brand.
Implemented aggressive buy-side outreach to institutions focused on value stocks and/or the alternative energy space.
Obtained new sell-side analyst research coverage from analysts at Olympia Capital and Singular Research.
Subsequent research, marketing and management execution helped support a share price rise from approximately $13.00 to over $30.00 in about 2 years, even during highly volatile markets.