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.

Challenges:

• 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.

Solutions

• 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

Results:

• 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.

Challenges:

• The  first step was to execute an M&A communications plan around the Company’s imminent transformational acquisition of a network of vein clinics.

Solutions:

• 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).

Results:

• 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 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.

Challenges:

• 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.

Solutions:

• 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.

• Results:
  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.