Darrow Associates lead a panel discussion on small cap investing at the Investor Summit conference held virtually from March 23-25, 2021. The topic of the panel discussion is “Small Cap Stocks in 2020-2021: Don’t Say They Aren’t Performing”. Watch the video to see the presentation or click on the PDF links to view the presentation slideshow and associated press release.
During the challenges of the COVID-19 pandemic, Darrow Associates has played a key role in supporting its clients’ ongoing strategic growth objectives and investor relations initiatives, including capital formation, merger and acquisition transactions, and in the institutionalization and broadening of shareholder bases.
AYRO, Inc. (NASDAQ: AYRO) closed $5.5 million registered direct offering (June 19, 2020). Palladium Capital Advisors, LLC acted as financial advisor.
Avinger, Inc. (NASDAQ: AVGR) closed $5.4 million underwritten public offering of common stock (June 26, 2020). Avinger announced exercise and closing of underwriter’s over-allotment offering for gross proceeds of $3.6 million (May 6, 2020). Aegis Capital Corp. acted as sole bookrunner for the offerings.
GigCapital3, Inc. (NYSE: GIK.U) announced closing of $200,000,000 initial public offering (May 18, 2020). Nomura Securities International, Inc. and Oppenheimer & Co. Inc. acted as the joint lead book-running managers for the offering, and Odeon Capital Group LLC acted as co-manager for the offering.
Kaleyra, Inc. (NYSE American: KLR) announced pricing of public offering of common stock for $35 million in gross proceeds before the close of the over-allotment option (June 24, 2020). Oppenheimer & Co. Inc. and Nomura Securities International, Inc. acted as joint book-running managers for the Offering. National Securities Corporation acted as lead manager for the Offering.
MTBC, Inc. (NASDAQ: MTBC) completed its offering of non-convertible preferred stock with $20.7 million in gross proceeds (April 27, 2020). B. Riley FBR, Inc., Ladenburg Thalmann and National Securities Corporation acted as bookrunning managers for the offering. Boenning & Scattergood, Chapin Davis, The Benchmark Company, Wedbush Securities and Dougherty & Company LLC, acted as co-managers for the offering.
QuickLogic Corporation (NASDAQ: QUIK) announced pricing of $8.75 million public offering of common stock before the close of the over-allotment option (June 18, 2020). Oppenheimer & Co. Inc. acted as the sole underwriter for the offering.
Sonim Technologies (NASDAQ: SONM) announced the closing of a $27.6 million public offering, including full exercise of underwriters’ overallotment option (June 9, 2020). Oppenheimer & Co. Inc. and Lake Street Capital Markets LLC acted as joint book-running managers for the offering.
Mergers & Acquisitions
AYRO, Inc. (NASDAQ: AYRO): DropCar and AYRO stockholders approved the merger of the two companies; AYRO, Inc. common shares commence trading on NASDAQ under the ticker symbol “AYRO” on May 29, 2020 (May 28, 2020).
MTBC, Inc. (NASDAQ: MTBC) acquires Meridian Medical Management, a former GE Healthcare IT company (June 17, 2020).
Equity Research Coverage Initiation
Ducommun Incorporated (NYSE: DCO) coverage initiated by RBC Capital Markets. Kaleyra, Inc. (NYSE American: KLR) coverage initiated by Oppenheimer & Co. Lakeland Industries (NASDAQ: LAKE) coverage initiated by The Benchmark Company.
Genasys Inc. (NASDAQ: GNSS) was added to the Russell 3000 ® Index. Lakeland Industries (NASDAQ: LAKE) was added to the Russell 3000 ® Index. LightPath Technologies (NASDAQ: LPTH) was added to the Russell Microcap ® Index. QuickLogic Corporation (NASDAQ: QUIK) was added to the Russell Microcap ® Index.
Darrow Associates, Inc., a leading national investor relations (IR) consulting firm, today announced the introduction of its Virtual Investor Marketing Event broadcast platform, an innovative and unique approach for investment community outreach using the latest in online technologies. The platform was developed and is being implemented in partnership with Issuer Direct Corporation (NYSE American: ISDR).
The Darrow Associates virtual event platform allows targeted investors to participate in a webcast presentation with integrated slideshow along with a Q&A session. Coordinated and hosted by Darrow Associates consultants, each event will focus on a single client for a one-to-many experience. In addition, each event will feature a special guest speaker to provide insightful commentary and interaction specific to the client or topic in focus. Guest speakers will be selected for their prominence on Wall Street and for experience in the industry of the participating client.
The singular client focus for each event and the special guest speaker specific to the presenting company are what sets this platform apart from other investor oriented virtual events. To drive participation from the global investment community and adhering to best practices in corporate governance, virtual events will be widely marketed across multiple platforms by Darrow Associates, its partners and clients.
“We are excited to launch our unique virtual investor marketing concept that raises the bar in servicing management teams of small companies looking to increase their presence throughout the investment community,” said Jordan Darrow, President of Darrow Associates. “At a time when the COVID-19 pandemic is disrupting how public companies interact with the investment community as well as presenting challenges for their financial performance and business prospects, our virtual investor marketing events provide a creative, cost-effective and highly productive tool in our IR toolbox.”
“Darrow Associates continues to innovate in bringing best-in-class services and consultation to its clients,” said Issuer Direct President and CEO Brian Balbirnie. “We have worked alongside Darrow Associates for many years for press release distribution and other services, and we appreciate their well-earned brand as a leading investor relations agency with a commitment to the highest standards of client representation. We are pleased they have chosen Issuer Direct’s technology solution as the foundation for their new Virtual Investor Marketing Event platform.”
Since its founding in 2005 in New York, Darrow Associates has added to its client base while expanding with locations in Silicon Valley (2013) and Austin, TX (2016). The firm maintains an exclusively senior-level professional staff and has grown as one of the largest and most trusted IR consulting firms for middle market public companies.
About Issuer Direct Corporation
Issuer Direct® is an industry-leading communications and compliance company focusing on the needs of corporate issuers. Issuer Direct’s principal platform, Platform id.™, empowers users by thoughtfully integrating the most relevant tools, technologies, and services, thus eliminating the complexity associated with producing and distributing financial and business communications. Headquartered in Raleigh, NC, Issuer Direct serves thousands of public and private companies globally. For more information, please visit issuerdirect.com, connect with us on LinkedIn or follow us on Twitter.
Trump Rants on Earnings Season After Complaints From Buffett, Dimon
President Donald Trump wrote in a tweet Friday that he wants the Securities and Exchange Commission to study the possibility of requiring companies to report earnings every six months instead of three, as is the current practice.
Maybe Trump Should Create a One-Day Super Bowl for Corporate Earnings Releases
In less than two years as president, Donald Trump has shaken up the business and investing establishment with controversial trade policies, from-the-hip assaults on corporate giants like Amazon.com Inc. (AMZN – Get Report) and off-script jawboning of the Federal Reserve.
Now, he’s taking on another pillar of corporate America: the quarterly earnings season.
In a Tweet Friday, Trump wrote that he had asked the U.S. Securities and Exchange Commission to study whether publicly traded companies should be allowed to report their results every six months instead of three months, as is the current practice.
Trump said that he made the request after speaking with some of the world’s top business leaders about how to “make business (jobs) even better in the U.S.” One of them told him that the answer was to stop quarterly reporting in favor of a six-month process, according to the tweet.
“That would allow greater flexibility & save money,” Trump wrote. “I have asked the SEC to study!”
While it may seem strange that a president known for tweeting both major policy announcements and his private thoughts several times a day might want companies to provide information less frequently, the quarterly frenzy of earnings releases has long generated complaints from CEOs. The reports, which the SEC requires to make sure investors are fully informed about the ongoing performance of publicly traded companies, have been criticized for encouraging short-term thinking among corporate executives while discouraging investment in long-term growth.
SEC Chairman Jay Clayton said later Friday in a statement that the agency “continues to study public-company reporting requirements, including the frequency of reporting.” The SEC is considering regulatory changes that would “encourage long-term capital formation” while protecting investors, he said.
“The president has highlighted a key consideration for American companies and, importantly, American investors and their families — encouraging long-term investment in our country,” Clayton said. “Many investors and market participants share this perspective.”
In June, the billionaire investor and Berkshire Hathaway Inc. (BRK.A – Get Report) CEO Warren Buffett and JPMorgan Chase & Co. (JPM – Get Report) CEO Jamie Dimon wrote jointly in a Wall Street Journal op-ed piece that companies should stop providing earnings guidance on a quarterly basis. Doing so leads to an unhealthy focus on short-term profits, they wrote.
Companies in Europe already have the option of posting results every six months, though some still opt to report every three months voluntarily, or pursuant to the requirements of a stock-exchange listing in the U.S., said Jordan Darrow, founder of Austin, Texas-based Darrow Associates, a national investor-relations consulting firm.
A change in the reporting frequency wouldn’t likely save companies much money, since they’ll still need to retain staff to handle the mid-year and year-end releases, Darrow said. Costs that pertain directly to the quarterly reports, such as a $500 press release and the accounting and legal reviews, are relatively minimal, he said.
“It’ll save a little money but it’s probably inconsequential for most companies,” Darrow said.
It’s probably true, however, that moving to a six-month reporting period would encourage longer-term thinking among executives and investors, he said. The news might be unwelcome for day traders and hedge funds that rely on computer-driven algorithms to scan news headlines.
“What you will do is, maybe for the benefit of the markets, create a more longer-term perspective on financial performance, which in turn will likely result in less trading volatility,” Darrow said. “But if you reduce your information flow there’s going to be less actions to base your trades upon.”
The National Institute of Investor Relations, a professional association, hasn’t taken an official position on the frequency of quarterly earnings reporting, according to Ted Allen, vice president for communications. However, he wrote in an e-mail, the group has encouraged companies to provide long-term earnings guidance, if they choose to provide guidance at all.
“We certainly support efforts to promote long-termism within our capital markets,” Allen wrote.
Chris Hodges, CEO of Chicago-based investor-relations consultancy Alpha IR Group, wrote in an e-mail that “short-termism” has become a “distraction” for public companies.
“As such, we would generally be supportive of policy changes that would make it easier for our client-management teams to spend more time focusing on running their businesses,” he said. “Having said that, we do believe moving to a six-month reporting schedule could have significant ramifications on trading activity in today’s highly sophisticated public markets, and therefore believe the impacts of such a change should be studied extensively.”
Companies could still voluntarily report earnings on a quarterly basis, Darrow said, especially smaller firms that are looking to generate interest among investors. And management would still have to provide an update whenever there’s a material change in the underlying business, he said.
“If you’re a company that wants that transparency, you’re free to report whenever you want,” Darrow said. “But the majority of public companies would like to report less if they could.”