Conference Info:Date: June 26-27, 2013
Location: The Metropolitan Club, New York City
Audience: Institutional investors, high net worth individual investors, family offices, business development executives throughout the US and Europe building and financing high growth medical technology, health care and life science companies.
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New Markets to Finance Growth Companies
Alternative and Emerging New Markets to Finance Growth Companies
Wednesday, June 26th: 4:00PM- 5:00PM
Industry leaders discuss the emergence of quasi-public markets to bring liquidity to growth companies.
Emerging secondary markets have become a media-friendly channel to potentially support investment activity in a recovering economy. Popular in the tech space, this concept is now being introduced to the life science sector. Among the problems facing investors in life sciences is the exit strategy: access to liquidity in a reasonable time, despite long-term revenue projections. In a moribund economy – with EGCs struggling to reach the public markets – valuation for these companies is down, making investment even riskier. Secondary and non-major markets may help inspire investors, as they represent a jumping off point to incubate companies before reaching the public markets. Further, the JOBS Act may define a much broader and more active investor pool, a large percentage of whom will approach investment strategy far differently than traditional long-term institutional holders. Yet despite promise, significant questions remain, concerning both regulatory and operational issues. This panel will explore both the metaphysical ideas and the tangible operations concerning such markets, asking:
- Does the emergence of second markets harm or bolster your valuation? What new investor classes may arise?
- What are the advantages of listing on non-major markets?
- What are the financial and clinical ‘sweet spots’ for being ‘semi-public’?
- What advantages exist for going to market earlier, over remaining private? What is sacrificed, and what is gained?
- How do secondary markets affect institutional holder investment strategy?
- Why should you participate in a secondary market?
- What are the regulatory constraints in participating?
- Should you support secondary market offerings?
- What does the move to ‘semi-public’ and non-major publically listed do to your investment?
- What are the regulatory hurdles and costs associated with reaching these markets?
- How does valuation change for a company using this strategy?
- How do companies avoid thinly traded shares?
Introduction by Doug Ellenoff, Managing Partner, Ellenoff, Grossman & Schole Douglas S. Ellenoff, a member of Ellenoff, Grossman & Schole since its founding in 1992, is a corporate and securities attorney with a specialty in business transactions and corporate financings. Mr. Ellenoff has represented public companies in connection with their initial public offerings, secondary public offerings, regulatory compliance as well as general corporate governance matters. During his career, he has represented numerous broker-dealers, venture capital investor groups and many corporations involved in the capital formation process. In the last several years, he has been involved at various stages in numerous registered public offerings, including 100 financings and, with other members of the firm, over 400 private placements into public companies (see PIPEs and Venture Capital), representing either the issuers of those securities or the registered broker-dealers acting as placement agent. Along with other members of the firm, Mr. Ellenoff has been involved at various stages with over 70 registered blind pool offerings (commonly referred to as “SPACs”; 27 of which have consummated their IPO’s raising over $1.5 billion). In addition to our IPO experience with SPACs, he has been involved with more than 20 SPAC M&A assignments.
Cromwell Coulson, CEO, OTC Markets Group In 1997, Cromwell led a group of investors in acquiring OTC Markets Group’s predecessor business, the National Quotation Bureau (NQB). Cromwell led the transformation of what was an opaque and inefficient market into technology-driven, Open, Transparent and Connected financial marketplaces. Today, OTC Markets Group operates the OTCQX®, OTCQB® and OTC Pink® marketplaces for over 10,000 securities. OTC Link® ATS, OTC Markets Group’s SEC registered Alternative Trading System, directly links a diverse network of leading U.S. broker-dealers that provide liquidity and execution services for these securities. OTC Markets Group has vastly increased the amount and quality of information available for investors and improved the efficiency of trading.
Vincent Molinari, CEO, GATE Technologies As founder and chief executive officer of GATE Technologies, Vince has been the driving force behind GATE’s mission to create new market infrastructure that brings efficiency, transparency, and liquidity to the unstructured global alternative asset markets. He is responsible for GATE’s strategic planning and business initiatives, including corporate alliances and strategic partnerships. His vision is based on a core belief that actionable knowledge and information drive investments, and that technology can close the gap between traditional and emerging alternative markets, a commitment reflected in the company’s initiatives in Impact Investing and emerging geographies such as India, Brazil, Europe, and Asia. Vince is also the founder of Global Access Holdings LLC, a financial media and analytics company, which identified a global trend line of illiquid securities and the potential market need for alternative asset trading platforms.
Steven Nelson, CEO, Continental Stock Transfer With more than 30 years of industry experience, Steven is heavily involved in Continental Stock Transfer & Trust’s day-to-day organizational and administrative issues, and in the overall management of client initiatives. An attorney with a background in public as well as private practice, he is a member of the New York State and Federal Bars. He has practiced at Simpson Thacher & Bartlett, and as a federal prosecutor. Steven is a member of the Securities Transfer Association Board, and chairs its Legal Committee, which is active in promoting important changes within the industry. A magna cum laude graduate of Brandeis University, he received Law Review honors from NYU Law School.
Jim Dowd, Founder and Managing Director, 99Funding Jim Dowd was previously a Senior Managing Director at Bear Stearns from 2003 to 2008. Dowd has worked in New York, London, Tokyo and Hong Kong and has been involved in developing new financial services businesses for over 25 years. Dowd is a CFA charterholder and a CPA.