Rodman & Renshaw Capital Group said today it has acquired certain assets of The Investor Relations Group, Inc. (IRG) a 16-year old, investor and public relations firm. Financial terms were not disclosed.
The deal follows the announcement on Feb. 2 of Rodman & Renshaw’s plans to launch DirectMarkets, an automated 24/7 electronic transaction platform for linking issuers with investors for private offers of securities by existing public companies. Direct Markets will draw up on the investor relations and multi-media skills of IRG to enable issuers to provide press releases directly to the investors, according to today’s release.
In an interview earlier this month Kevin Lupowitz, who was recruited to become CEO of DirectMarkets, told Wall Street & Technology, said he was building an issuer-managed social networking platform that will enable the public company to promote itself through its press releases to investors. “This is the idea that in one view, a company can promote itself through its press releases or virtual tour, which can be a consolidated social media feed,” said Lupowitz. “People who are interested in this issuer can go to one site, and effectively get all the information from what the issuer is routing out and what exists in the web sphere,” added Lupowitz.
The former IRG employees will join the company and will continue to provide a full suite of traditional and multi-media services. Among the initial benefits is that current and future clients of IRG will be priority presentation slots at future conferences and complimentary access to the recently announced multiple features of the DirectMarkets platform, the release stated.
In a statement, Edward Rubin, Rodman & Renshaw's CEO, said, “Having worked with Dian and the IRG team at various times throughout its long history, we have experienced first-hand their professionalism, expertise and enthusiasm. We are proud to welcome both the IRG employees and clients. We believe this acquisition will be complimentary to our ultimate vision for the future of DirectMarkets.”
In the same release, Dian Griesel, Ph.D., founder of IRG, said, “With the DirectMarkets platform, Rodman is once again bridging the gaps between investors and issuers in smart ways for all parties. Team IRG is excited to be part of this game-changing advance in our industry.”
Rodman & Renshaw will announce the new platform on March 6 at TradeTech 2012, a New York conference.