SlideShare a Scribd company logo
1 of 5
Download to read offline
update
                          INVESTOR RELATIONS


Article Reprint
                                                      EDITOR
                                                     Hank Boerner
                                        A S S I S TA N T E D I T O R
                                    AND PRODUCTION MANAGER
                                                 Melissa Jones

                                                CO P Y ED ITO R
My Company Went                               Patricia Reuss, Write-for-You
                                      EDITORIAL ADVISORY BOARD

Public — and                             Valerie Haertel David Olson
                                         Linda Kelleher Brian Rivel
                                        Michelle Levine Maureen Wolff-Reid

All I Got Was This                          Peg Lupton Bill Walkowiak
                                                  D IRECTO RS
                                                Bina Thompson, Chair

T-shirt                                 K. Blair Christie Catherine Mathis
                                              Derek Cole Nicole McIntosh
                                             Sally Curley Jeff Morgan
                                           Don De Laria David Prichard
                                         Carol DiRaimo Elizabeth Saunders
                                      Geoffrey G. Galow Douglas Wilburne
                                         Barbara Gasper Bradley Wilks
                                        Jenny R. Kobin Mona Zeehandelaar
                                            Ian Bacque, CIRI Representative
By Stephen Kilmer    IR Update is published monthly by the National Investor Relations Institute as a
                     service to its members. Annual subscriptions are available to nonmembers: $175.
                     ISSN 1098-5220 © 2008 by the National Investor Relations Institute. All rights
                     reserved. Web site: www.niri.org. Reprint permission granted by NIRI.

                     FOR SUBSCRIPTIONS OR CHANGE OF ADDRESS, CONTACT:
                     NIRI–IR Update, 8020 Towers Crescent Drive, Suite 250, Vienna, VA 22182,
                     Phone: (703) 506-3570, FAX: (703) 506-3571, e-mail: amumeka@niri.org
                     Annual e-subscriptions for nonmembers: $75

                     ADVERTISING:
                     Scott Oser, Advertising consultant, Phone: (301) 279-0468, e-mail: soser@niri.org

                     PLEASE SEND QUERIES, SUBMISSIONS AND REPRINTS REQUESTS TO:
                     Melissa Jones, Manager, Marketing Communication, Phone: (703) 462-2207,
                     e-mail: mjones@niri.org.

                     REPRINT FEES PER ARTICLE:
                     Electronic copy — Adobe Acrobat PDF file
                     Authors only: $75, Members: $200,
                     Nonmembers: $300
                     Web posting or e-mail distribution: $500
                     Hard copies: Quantity under 10: $10/copy
                     Quantities 10–100: $5/copy
May 2008             An estimate will be provided
                     for quantities over 100. All prices are
                     subject to a signed agreement.
going public




         My Company                                                                             and All I Got
         Went Public—                                                                         Was This T-Shirt




         By Stephen Kilmer




         F
                 ollowing a brief and as                                                                                market by storm and, by
                 it turned out mostly                                                                                   1999, our stock was trading at
                 unremarkable stint as                                                                                  10x sales and our trading ratio
         an Investment Advisor at a                                                                                     on NASDAQ vs. the TSX was
         major Canadian brokerage, and                                                                                  easily 75/25. Then, without
         then as an account director                                                                                    warning, a severe and pro-
         at CCN Matthews (now                                                                                           tracted price war devastated
         Marketwire), I was directly                                                                                    the LASIK industry. While
         introduced to the wonderful                                                                                    we eventually went on to
         world of IR in 1997 by                                                                                         “win” (that is, to survive) the
         accepting the position of man-                                                                                 industry price war, our stock
         ager of investor relations with Toronto, Ontario-based “LASIK” eye        was crushed beyond recognition and both the sell and buy sides
                                 surgery pioneer, TLC Vision Corporation.          had gone from loving it to hating it and finally to just not wanting
                                 (Coincidentally, this was my first client win     to ever think or speak about the stock again.
                                 while at CCN.)                                       Then, after a very long time dutifully spent “thinking,” “salva-
                                    While I progressed on a rewarding and          tion” finally came in the form of a $6 million investment that ulti-
                                 steady career path from manager to director       mately gave TLC control of a Tampa, Florida-based private oph-
                                 to vice president at TLC, unfortunately           thalmic device company, Vascular Sciences Corp, which was in the
                                 the company’s fortunes weren’t quite so           process of developing a novel blood filtration procedure — RHEO
         smooth. The first years were marked by absolutely “hyper” busi-           — to treat the dry form of an eye condition called age-related
         ness and stock price growth. The company had taken the U.S.               macular degeneration (“Dry AMD”). The Florida company had a

	   8	      may 2 0 0 8 	                               investor relations       update
going public


controversial past and retinal specialists were generally skeptical    became very clear to me — quickly. Some 13 million people in the
of both the company and its technology. The private managers,          United States are afflicted with Dry AMD and about eight million
therefore, had great difficulty raising the capital needed to com-     could reasonably be expected to benefit from the RHEO proce-
plete their clinical trials.                                           dure. Large market.
   The “voodoo” quality of the RHEO                                                                    The procedure consists of eight treat-
procedure hadn’t, however, put TLC                                                                 ments; each treatment required one
off one bit. After all, it wasn’t too many                                                         disposable RHEO filter set that we
                                                             our stock was
years prior that a large percentage of                       crushed beyond                        planned on selling to service providers
                                                             recognition
eye doctors had dismissed LASIK as                                                                 at $1,200.00 per. Therefore, every one
                                                             and both the
complete heresy — and very quickly                           sell and buy                          percent penetration into the available
                                                             sides had gone
LASIK grew to be the world’s most                                                                  market would generate $768 million
                                                             from loving
widely-performed elective surgical pro-                      it to hating                          in treatment set sales (8 million eligible
                                                             it to just not
cedure. Everything we had seen in our                                                              patients x 1 percent x 8 treatment sets x
                                                             wanting to ever
clinical due diligence process, including                    think or speak                        $1,200). Keeping in mind that this was
                                                             about it again.
an interim analysis of the pivotal trial                                                           a Medicare-eligible patient population,
data, led us to believe that the acquired                                                          there was no competing treatment and,
company’s procedure was effective in                                                               if left untreated, patients faced losing
treating Dry AMD.                                                                                  their vision and their independence.
                                                                       It followed that the investment thesis was extremely binary: If
Needed: The Investment Story
                                                                       the full pivotal trial data was positive and the FDA approved the
   While we were convinced, external stakeholders largely ignored
                                                                       procedure, the market could be worth billions of dollars; if FDA
the important corporate developments. The investment story
                                                                       declined, the market would be worthless.




                zu creates investor friendly websites.
                zu makes shareholders smile.
                Forget PDFs. Forget mail-outs. Go online.
                Our online annual reports and websites win international awards.
                Welcome to world-class investor relations.
                Welcome to zu.




                                                zu.com | online investor relations experts


	                                                    investor relations    update	                                          M ay 2 0 0 8 	      9
going public




            Initially as I tried to reach out to traditional money managers     a month, and spent a few days in each place meeting exclu-
          to tell the RHEO story, it felt very much like I was talking into     sively with locally-based hedge fund managers. I also launched
          the wind. Then it dawned on me: Given their compensation              a hedge fund-dedicated “TLC World” e-news service to pro-
          structure and different approach to risk management, the then-        vide extra historical, industry and scientific perspective for the
          emerging hedge fund community was much more likely to                 money managers; very quickly, I became the “go-to” person for
          embrace the RHEO opportunity. I had just read an article on           hedge fund managers wanting to learn about anything that had
          the NIRI Web site arguing that, contrary to popular belief, less      to do with AMD.
          than five percent of U.S. hedge funds had a short bias. And
                                                                                Let’s Do an IPO!
          despite this important fact, many IRO’s, CFO’s and CEO’s were
                                                                                                               After about ten months of this kind
          reportedly still reluctant to interact with
                                                                                                            of marketing to U.S. hedge funds, TLC’s
          them. I recognized that the added ben-
                                                                                                            stock had risen more than 500 percent.
          efit of targeting hedge funds was that I
                                                                                                            One day, feeling absolutely Herculean,
          wouldn’t be competing with very many                        Initially as
                                                                      I tried to                            I walked into my CEO’s office and pro-
          other issuers trying to get the same                        reach out to
                                                                                                            claimed that I could take our Vascular
          audience’s attention.                                       traditional
                                                                      money managers                        Sciences subsidiary public if he and
          Hedge Fund Strategy                                         to tell the RHEO
                                                                      story, it felt
                                                                                                            TLC’s board wanted me to. He agreed
             My strategy was to start very slowly,                    very much like I                      without too much hesitation, but made
                                                                      was talking into
          building relationships with the man-                        the wind.
                                                                                                            it conditional upon my personally man-
          agers of smaller hedge funds — with                                                               aging the transaction all the way from
          less than $50 million under manage-                                                               underwriter recruitment/selection, to
          ment — and vetting the company’s                                                                  prospectus drafting, to road show design
          story with them. After some refinement,                                                           and execution — with the noted excep-
          the story became ready for prime-time and I turned to this            tion of me having to give any public presentations on my own. I
          group of small hedge fund managers for personal introductions         also had to continue being TLC’s sole IRO throughout the process.
          to the institutional sales desks and the respective personalities        We decided to list the IPO on both NASDAQ and the TSX, the
          that they relied on most.                                             latter largely in order to accommodate TLC’s by-now minority
             With the help of these sales desks, I organized and executed       Canadian shareholder base. Vascular Sciences had no real infra-
          an “expert tour” with a knowledgeable and somewhat folksy             structure of its own (no internal council and no permanent CFO)
          TLC optometrist from Oklahoma to [expertly, of course] dis-           and didn’t have audited financial results. We were forced to run a
          cuss Dry AMD and the RHEO treatment with money managers.              rather cumbersome dual process where we — the issuer’s council,
          We traveled to one or two major cities, usually once or twice         underwriter’s council, the lead bankers and I — worked on the
	   10	      may 2 0 0 8 	                              investor relations    update
going public


front part of the book while our interim CFO worked with the          or moral obligation I have no choice but to take with me to the
external auditors to complete the financial section.                  grave, we finally filed the S1 for the spin-out of Vascular Sciences
                                                                      — now renamed OccuLogix — in August 2004. Following
Enter the Speculators
                                                                      SEC review of the document (OccuLogix was incorporated in
   About half way through drafting, conflicting speculation on
                                                                      Delaware), the drafting and filing of amendments, and more, our
TLC’s plans for Vascular Sciences emerged. On one side, a large
                                                                      IPO road show was launched approximately 13 weeks later. The
and well-known hedge fund reportedly initiated a significant
                                                                      tour brought us to 15 North American cities over 14 business
short position in TLC, theorizing that no attempt would be
                                                                      days. Our original pricing range was $8-$10, but that was raised
made to IPO the RHEO business and, even if there was, the IPO
                                                                      to $10-$12 about half way through marketing. We priced at $12
would fail. After establishing their position, they (according to
                                                                      (33 percent above the original filing mid-point), raising $100
reliable sources) paid or otherwise encouraged a small “inde-
                                                                      million at a post-money valuation of $525 million.
pendent” research shop to put out a series of very negative and
inflammatory reports on both TLC and the RHEO procedure. In           Lesson: Tailor the Audience to the Message
contrast, Canada’s national daily newspaper started to run uncon-         By tailoring our audience to our message instead of the other
firmed stories that an IPO was imminent and that the analysts          way around, and by embracing non-traditional investment man-
were expecting it to be a huge success.                                agers instead of running away from them, we were able to pull
                                                                       off the “impossible.” OccuLogix was reportedly the first non-FDA
That T-Shirt
                                                                       approved/pre-revenue medical device company to successfully go
   This is about the time that the t-shirt comes in. A friend on
                                                                       public on a major U.S. exchange in over a decade. It was also the
the sales desk of a lead underwriter sent me an over-the-top
                                                                       largest healthcare IPO in Canadian market history. Most impres-
and once-in-a-lifetime invitation. Picture this opportunity for
                                                                       sively (I think), TLC achieved $295 million in aggregate cash
the IRO of small-cap: The private helicopter picks me up in
                                                                                                   and paper gains — primarily from its
Toronto and brings me to the front lawn
                                                                                                   retention of 53 percent of OccuLogix’
of a rented mansion in the fabled Long
                                                                                                   shares — through the OccuLogix IPO
Island “Hamptons.” There, 20 or so of
                                                                                                   in return for its original $6 million
America’s most successful and wealthiest                       To his credit,
                                                               he did send
                                                                                                   investment.
hedge fund managers, a few institutional
                                                               me an official                         End of story: I moved exclusively to
salespeople and this IRO are to enjoy a                        u.S. open
                                                               T-shirt (two
                                                                                                   OccuLogix from TLC following the
fully-catered weekend attending the U.S.
                                                               sizes too                           IPO and, after many more twists and
Open at nearby Shinnecock Hills Golf                           small) to
                                                               “make up” for
                                                                                                   turns, recently left to co-found my own
Club. I felt like a rock star! Because we
                                                               my loss.                            IR agency in Toronto. While I feel
had already engaged the underwriters,
                                                                                                   equally comfortable operating on both
and TLC trusted me to keep our plans
                                                                                                   sides of the northern border, I believe
for Vascular Sciences to myself, I was
                                                                                                   now that my true niche is in helping
given the green light by management
                                                                                                   Canadian and other non-U.S. issuers
to accept the invitation. My dreams
                                                                       successfully navigate and penetrate the U.S. capital markets.
were quickly dashed when the bankers got wind of the plan.
                                                                       There were many hard-won lessons for me coming out of the
They believed the risk that I might let something slip, however
                                                                       IPO — and I hope that NIRI IR Update readers can benefit from
remote, wasn’t worth taking. They instructed the salesperson to
                                                                       some of the story as told here by a former corporate IRO. And, I
un-invite me. To his credit, he did send me a t-shirt (two sizes
                                                                       am keeping the T-shirt. IRU
too small) to “make up” for my loss.

The OccuLogix IPO in 2004                                             Steve Kilmer is co-founder and managing partner of Kilmer-Lucas. E-mail
                                                                      him at stephen@kilmerlucas.com. Web site: www.kilmerlucas.com
   After an extraordinary amount of effort by all parties, and
a series of underwriting group intrigue that out of legal and/
	                                                    investor relations   update	                                              M ay 2 0 0 8 	   11

More Related Content

Similar to Kilmer niri may08_ir_update

Year End 2009 Viewpoint
Year End 2009 ViewpointYear End 2009 Viewpoint
Year End 2009 Viewpointmjdeschaine
 
Tough Times Tougher Teams
Tough Times Tougher Teams Tough Times Tougher Teams
Tough Times Tougher Teams slap Company
 
Stirling Associates 2013
Stirling Associates 2013Stirling Associates 2013
Stirling Associates 2013Lynne Park
 
Tenus Terminadio Cuspis
Tenus Terminadio CuspisTenus Terminadio Cuspis
Tenus Terminadio CuspisDonald Teel
 
Public Engagement In The Conversation Age
Public Engagement In The Conversation AgePublic Engagement In The Conversation Age
Public Engagement In The Conversation AgePiaras Kelly
 
Public Engagement in the Conversation Age - 2008
Public Engagement in the Conversation Age - 2008Public Engagement in the Conversation Age - 2008
Public Engagement in the Conversation Age - 2008Edelman Digital
 
ATHE FINANCIAL PAGEBRANDED A CHEATby James Surowieck.docx
ATHE FINANCIAL PAGEBRANDED A CHEATby James Surowieck.docxATHE FINANCIAL PAGEBRANDED A CHEATby James Surowieck.docx
ATHE FINANCIAL PAGEBRANDED A CHEATby James Surowieck.docxjaggernaoma
 
KW Outfront Magazine - Online Edition | 1st Quarter 2012
KW Outfront Magazine - Online Edition | 1st Quarter 2012KW Outfront Magazine - Online Edition | 1st Quarter 2012
KW Outfront Magazine - Online Edition | 1st Quarter 2012Keller Williams Careers
 
@premium_ebooks How Money Works by DK _131221105133.pdf
@premium_ebooks  How Money Works by DK _131221105133.pdf@premium_ebooks  How Money Works by DK _131221105133.pdf
@premium_ebooks How Money Works by DK _131221105133.pdfSumni Uchiha
 
dillard's annual reports 2005
dillard's annual reports 2005dillard's annual reports 2005
dillard's annual reports 2005finance31
 
Future of Crypto Currency and boom in Ethereum Mining - 2018
Future of Crypto Currency and boom in Ethereum Mining - 2018Future of Crypto Currency and boom in Ethereum Mining - 2018
Future of Crypto Currency and boom in Ethereum Mining - 2018zcash-mining
 
Urban Lifestyle Report - New Media (Oct 08)
Urban Lifestyle Report - New Media (Oct 08)Urban Lifestyle Report - New Media (Oct 08)
Urban Lifestyle Report - New Media (Oct 08)Urban Lifestyle
 
Harvard Ext Oct.2008.Ppt
Harvard Ext Oct.2008.PptHarvard Ext Oct.2008.Ppt
Harvard Ext Oct.2008.PptLois Kelly
 
dillard's annual reports 2004
dillard's annual reports 2004dillard's annual reports 2004
dillard's annual reports 2004finance31
 

Similar to Kilmer niri may08_ir_update (20)

Bbb 2012 centennial_pamphlet_final
Bbb 2012 centennial_pamphlet_finalBbb 2012 centennial_pamphlet_final
Bbb 2012 centennial_pamphlet_final
 
Year End 2009 Viewpoint
Year End 2009 ViewpointYear End 2009 Viewpoint
Year End 2009 Viewpoint
 
Tough Times Tougher Teams
Tough Times Tougher Teams Tough Times Tougher Teams
Tough Times Tougher Teams
 
Stirling Associates 2013
Stirling Associates 2013Stirling Associates 2013
Stirling Associates 2013
 
Stirling Associates Portfolio
Stirling Associates PortfolioStirling Associates Portfolio
Stirling Associates Portfolio
 
Tenus Terminadio Cuspis
Tenus Terminadio CuspisTenus Terminadio Cuspis
Tenus Terminadio Cuspis
 
Fundamentals 201006
Fundamentals 201006Fundamentals 201006
Fundamentals 201006
 
Public Engagement In The Conversation Age
Public Engagement In The Conversation AgePublic Engagement In The Conversation Age
Public Engagement In The Conversation Age
 
Public Engagement in the Conversation Age - 2008
Public Engagement in the Conversation Age - 2008Public Engagement in the Conversation Age - 2008
Public Engagement in the Conversation Age - 2008
 
Venture Summit 2012 Program
Venture Summit 2012 ProgramVenture Summit 2012 Program
Venture Summit 2012 Program
 
ATHE FINANCIAL PAGEBRANDED A CHEATby James Surowieck.docx
ATHE FINANCIAL PAGEBRANDED A CHEATby James Surowieck.docxATHE FINANCIAL PAGEBRANDED A CHEATby James Surowieck.docx
ATHE FINANCIAL PAGEBRANDED A CHEATby James Surowieck.docx
 
LRBDAR
LRBDARLRBDAR
LRBDAR
 
KW Outfront Magazine - Online Edition | 1st Quarter 2012
KW Outfront Magazine - Online Edition | 1st Quarter 2012KW Outfront Magazine - Online Edition | 1st Quarter 2012
KW Outfront Magazine - Online Edition | 1st Quarter 2012
 
@premium_ebooks How Money Works by DK _131221105133.pdf
@premium_ebooks  How Money Works by DK _131221105133.pdf@premium_ebooks  How Money Works by DK _131221105133.pdf
@premium_ebooks How Money Works by DK _131221105133.pdf
 
dillard's annual reports 2005
dillard's annual reports 2005dillard's annual reports 2005
dillard's annual reports 2005
 
Rohan K (14-03-18)
Rohan K (14-03-18)Rohan K (14-03-18)
Rohan K (14-03-18)
 
Future of Crypto Currency and boom in Ethereum Mining - 2018
Future of Crypto Currency and boom in Ethereum Mining - 2018Future of Crypto Currency and boom in Ethereum Mining - 2018
Future of Crypto Currency and boom in Ethereum Mining - 2018
 
Urban Lifestyle Report - New Media (Oct 08)
Urban Lifestyle Report - New Media (Oct 08)Urban Lifestyle Report - New Media (Oct 08)
Urban Lifestyle Report - New Media (Oct 08)
 
Harvard Ext Oct.2008.Ppt
Harvard Ext Oct.2008.PptHarvard Ext Oct.2008.Ppt
Harvard Ext Oct.2008.Ppt
 
dillard's annual reports 2004
dillard's annual reports 2004dillard's annual reports 2004
dillard's annual reports 2004
 

Recently uploaded

Corporate Presentation Probe May 2024.pdf
Corporate Presentation Probe May 2024.pdfCorporate Presentation Probe May 2024.pdf
Corporate Presentation Probe May 2024.pdfProbe Gold
 
一比一原版(ArtEZ毕业证书)ArtEZ艺术学院毕业证成绩单原件一模一样
一比一原版(ArtEZ毕业证书)ArtEZ艺术学院毕业证成绩单原件一模一样一比一原版(ArtEZ毕业证书)ArtEZ艺术学院毕业证成绩单原件一模一样
一比一原版(ArtEZ毕业证书)ArtEZ艺术学院毕业证成绩单原件一模一样dyuozua
 
一比一原版(Mac毕业证书)麦克马斯特大学毕业证成绩单原件一模一样
一比一原版(Mac毕业证书)麦克马斯特大学毕业证成绩单原件一模一样一比一原版(Mac毕业证书)麦克马斯特大学毕业证成绩单原件一模一样
一比一原版(Mac毕业证书)麦克马斯特大学毕业证成绩单原件一模一样dyuozua
 
Teekay Tankers Q1-24 Earnings Presentation
Teekay Tankers Q1-24 Earnings PresentationTeekay Tankers Q1-24 Earnings Presentation
Teekay Tankers Q1-24 Earnings PresentationTeekay Tankers Ltd
 
Camil Institutional Presentation_Mai24.pdf
Camil Institutional Presentation_Mai24.pdfCamil Institutional Presentation_Mai24.pdf
Camil Institutional Presentation_Mai24.pdfCAMILRI
 
Teck Supplemental Information, May 2, 2024
Teck Supplemental Information, May 2, 2024Teck Supplemental Information, May 2, 2024
Teck Supplemental Information, May 2, 2024TeckResourcesLtd
 
Camil Institutional Presentation_Mai24.pdf
Camil Institutional Presentation_Mai24.pdfCamil Institutional Presentation_Mai24.pdf
Camil Institutional Presentation_Mai24.pdfCAMILRI
 
Osisko Gold Royalties Ltd - Corporate Presentation, May 2024
Osisko Gold Royalties Ltd - Corporate Presentation, May 2024Osisko Gold Royalties Ltd - Corporate Presentation, May 2024
Osisko Gold Royalties Ltd - Corporate Presentation, May 2024Osisko Gold Royalties Ltd
 
皇后大学毕业证
皇后大学毕业证皇后大学毕业证
皇后大学毕业证dyuozua
 
BofA Securities GMM and Steel Conference
BofA Securities GMM and Steel ConferenceBofA Securities GMM and Steel Conference
BofA Securities GMM and Steel ConferenceTeckResourcesLtd
 
一比一原版(UNITEC毕业证书)UNITEC理工学院毕业证成绩单原件一模一样
一比一原版(UNITEC毕业证书)UNITEC理工学院毕业证成绩单原件一模一样一比一原版(UNITEC毕业证书)UNITEC理工学院毕业证成绩单原件一模一样
一比一原版(UNITEC毕业证书)UNITEC理工学院毕业证成绩单原件一模一样dyuozua
 
一比一原版(MU毕业证书)梅努斯大学毕业证成绩单原件一模一样
一比一原版(MU毕业证书)梅努斯大学毕业证成绩单原件一模一样一比一原版(MU毕业证书)梅努斯大学毕业证成绩单原件一模一样
一比一原版(MU毕业证书)梅努斯大学毕业证成绩单原件一模一样dyuozua
 
一比一原版(Otago毕业证书)奥塔哥大学毕业证成绩单原件一模一样
一比一原版(Otago毕业证书)奥塔哥大学毕业证成绩单原件一模一样一比一原版(Otago毕业证书)奥塔哥大学毕业证成绩单原件一模一样
一比一原版(Otago毕业证书)奥塔哥大学毕业证成绩单原件一模一样dyuozua
 
Teekay Corporation Q1-24 Earnings Results
Teekay Corporation Q1-24 Earnings ResultsTeekay Corporation Q1-24 Earnings Results
Teekay Corporation Q1-24 Earnings ResultsTeekay Corporation
 
一比一原版(UC毕业证书)坎特伯雷大学毕业证成绩单原件一模一样
一比一原版(UC毕业证书)坎特伯雷大学毕业证成绩单原件一模一样一比一原版(UC毕业证书)坎特伯雷大学毕业证成绩单原件一模一样
一比一原版(UC毕业证书)坎特伯雷大学毕业证成绩单原件一模一样dyuozua
 
一比一原版(UoA毕业证书)奥克兰大学毕业证成绩单原件一模一样
一比一原版(UoA毕业证书)奥克兰大学毕业证成绩单原件一模一样一比一原版(UoA毕业证书)奥克兰大学毕业证成绩单原件一模一样
一比一原版(UoA毕业证书)奥克兰大学毕业证成绩单原件一模一样dyuozua
 
Jual obat aborsi Tawangmangu ( 085657271886 ) Cytote pil telat bulan penggugu...
Jual obat aborsi Tawangmangu ( 085657271886 ) Cytote pil telat bulan penggugu...Jual obat aborsi Tawangmangu ( 085657271886 ) Cytote pil telat bulan penggugu...
Jual obat aborsi Tawangmangu ( 085657271886 ) Cytote pil telat bulan penggugu...Klinik kandungan
 
一比一原版(AUT毕业证书)奥克兰理工大学毕业证成绩单原件一模一样
一比一原版(AUT毕业证书)奥克兰理工大学毕业证成绩单原件一模一样一比一原版(AUT毕业证书)奥克兰理工大学毕业证成绩单原件一模一样
一比一原版(AUT毕业证书)奥克兰理工大学毕业证成绩单原件一模一样dyuozua
 
一比一原版(UofT毕业证书)多伦多大学毕业证成绩单原件一模一样
一比一原版(UofT毕业证书)多伦多大学毕业证成绩单原件一模一样一比一原版(UofT毕业证书)多伦多大学毕业证成绩单原件一模一样
一比一原版(UofT毕业证书)多伦多大学毕业证成绩单原件一模一样dyuozua
 

Recently uploaded (20)

Corporate Presentation Probe May 2024.pdf
Corporate Presentation Probe May 2024.pdfCorporate Presentation Probe May 2024.pdf
Corporate Presentation Probe May 2024.pdf
 
一比一原版(ArtEZ毕业证书)ArtEZ艺术学院毕业证成绩单原件一模一样
一比一原版(ArtEZ毕业证书)ArtEZ艺术学院毕业证成绩单原件一模一样一比一原版(ArtEZ毕业证书)ArtEZ艺术学院毕业证成绩单原件一模一样
一比一原版(ArtEZ毕业证书)ArtEZ艺术学院毕业证成绩单原件一模一样
 
一比一原版(Mac毕业证书)麦克马斯特大学毕业证成绩单原件一模一样
一比一原版(Mac毕业证书)麦克马斯特大学毕业证成绩单原件一模一样一比一原版(Mac毕业证书)麦克马斯特大学毕业证成绩单原件一模一样
一比一原版(Mac毕业证书)麦克马斯特大学毕业证成绩单原件一模一样
 
Teekay Tankers Q1-24 Earnings Presentation
Teekay Tankers Q1-24 Earnings PresentationTeekay Tankers Q1-24 Earnings Presentation
Teekay Tankers Q1-24 Earnings Presentation
 
Camil Institutional Presentation_Mai24.pdf
Camil Institutional Presentation_Mai24.pdfCamil Institutional Presentation_Mai24.pdf
Camil Institutional Presentation_Mai24.pdf
 
Teck Supplemental Information, May 2, 2024
Teck Supplemental Information, May 2, 2024Teck Supplemental Information, May 2, 2024
Teck Supplemental Information, May 2, 2024
 
Camil Institutional Presentation_Mai24.pdf
Camil Institutional Presentation_Mai24.pdfCamil Institutional Presentation_Mai24.pdf
Camil Institutional Presentation_Mai24.pdf
 
Osisko Gold Royalties Ltd - Corporate Presentation, May 2024
Osisko Gold Royalties Ltd - Corporate Presentation, May 2024Osisko Gold Royalties Ltd - Corporate Presentation, May 2024
Osisko Gold Royalties Ltd - Corporate Presentation, May 2024
 
皇后大学毕业证
皇后大学毕业证皇后大学毕业证
皇后大学毕业证
 
BofA Securities GMM and Steel Conference
BofA Securities GMM and Steel ConferenceBofA Securities GMM and Steel Conference
BofA Securities GMM and Steel Conference
 
一比一原版(UNITEC毕业证书)UNITEC理工学院毕业证成绩单原件一模一样
一比一原版(UNITEC毕业证书)UNITEC理工学院毕业证成绩单原件一模一样一比一原版(UNITEC毕业证书)UNITEC理工学院毕业证成绩单原件一模一样
一比一原版(UNITEC毕业证书)UNITEC理工学院毕业证成绩单原件一模一样
 
一比一原版(MU毕业证书)梅努斯大学毕业证成绩单原件一模一样
一比一原版(MU毕业证书)梅努斯大学毕业证成绩单原件一模一样一比一原版(MU毕业证书)梅努斯大学毕业证成绩单原件一模一样
一比一原版(MU毕业证书)梅努斯大学毕业证成绩单原件一模一样
 
一比一原版(Otago毕业证书)奥塔哥大学毕业证成绩单原件一模一样
一比一原版(Otago毕业证书)奥塔哥大学毕业证成绩单原件一模一样一比一原版(Otago毕业证书)奥塔哥大学毕业证成绩单原件一模一样
一比一原版(Otago毕业证书)奥塔哥大学毕业证成绩单原件一模一样
 
Osisko Gold Royalties Ltd - Q1 2024 Results
Osisko Gold Royalties Ltd - Q1 2024 ResultsOsisko Gold Royalties Ltd - Q1 2024 Results
Osisko Gold Royalties Ltd - Q1 2024 Results
 
Teekay Corporation Q1-24 Earnings Results
Teekay Corporation Q1-24 Earnings ResultsTeekay Corporation Q1-24 Earnings Results
Teekay Corporation Q1-24 Earnings Results
 
一比一原版(UC毕业证书)坎特伯雷大学毕业证成绩单原件一模一样
一比一原版(UC毕业证书)坎特伯雷大学毕业证成绩单原件一模一样一比一原版(UC毕业证书)坎特伯雷大学毕业证成绩单原件一模一样
一比一原版(UC毕业证书)坎特伯雷大学毕业证成绩单原件一模一样
 
一比一原版(UoA毕业证书)奥克兰大学毕业证成绩单原件一模一样
一比一原版(UoA毕业证书)奥克兰大学毕业证成绩单原件一模一样一比一原版(UoA毕业证书)奥克兰大学毕业证成绩单原件一模一样
一比一原版(UoA毕业证书)奥克兰大学毕业证成绩单原件一模一样
 
Jual obat aborsi Tawangmangu ( 085657271886 ) Cytote pil telat bulan penggugu...
Jual obat aborsi Tawangmangu ( 085657271886 ) Cytote pil telat bulan penggugu...Jual obat aborsi Tawangmangu ( 085657271886 ) Cytote pil telat bulan penggugu...
Jual obat aborsi Tawangmangu ( 085657271886 ) Cytote pil telat bulan penggugu...
 
一比一原版(AUT毕业证书)奥克兰理工大学毕业证成绩单原件一模一样
一比一原版(AUT毕业证书)奥克兰理工大学毕业证成绩单原件一模一样一比一原版(AUT毕业证书)奥克兰理工大学毕业证成绩单原件一模一样
一比一原版(AUT毕业证书)奥克兰理工大学毕业证成绩单原件一模一样
 
一比一原版(UofT毕业证书)多伦多大学毕业证成绩单原件一模一样
一比一原版(UofT毕业证书)多伦多大学毕业证成绩单原件一模一样一比一原版(UofT毕业证书)多伦多大学毕业证成绩单原件一模一样
一比一原版(UofT毕业证书)多伦多大学毕业证成绩单原件一模一样
 

Kilmer niri may08_ir_update

  • 1. update INVESTOR RELATIONS Article Reprint EDITOR Hank Boerner A S S I S TA N T E D I T O R AND PRODUCTION MANAGER Melissa Jones CO P Y ED ITO R My Company Went Patricia Reuss, Write-for-You EDITORIAL ADVISORY BOARD Public — and Valerie Haertel David Olson Linda Kelleher Brian Rivel Michelle Levine Maureen Wolff-Reid All I Got Was This Peg Lupton Bill Walkowiak D IRECTO RS Bina Thompson, Chair T-shirt K. Blair Christie Catherine Mathis Derek Cole Nicole McIntosh Sally Curley Jeff Morgan Don De Laria David Prichard Carol DiRaimo Elizabeth Saunders Geoffrey G. Galow Douglas Wilburne Barbara Gasper Bradley Wilks Jenny R. Kobin Mona Zeehandelaar Ian Bacque, CIRI Representative By Stephen Kilmer IR Update is published monthly by the National Investor Relations Institute as a service to its members. Annual subscriptions are available to nonmembers: $175. ISSN 1098-5220 © 2008 by the National Investor Relations Institute. All rights reserved. Web site: www.niri.org. Reprint permission granted by NIRI. FOR SUBSCRIPTIONS OR CHANGE OF ADDRESS, CONTACT: NIRI–IR Update, 8020 Towers Crescent Drive, Suite 250, Vienna, VA 22182, Phone: (703) 506-3570, FAX: (703) 506-3571, e-mail: amumeka@niri.org Annual e-subscriptions for nonmembers: $75 ADVERTISING: Scott Oser, Advertising consultant, Phone: (301) 279-0468, e-mail: soser@niri.org PLEASE SEND QUERIES, SUBMISSIONS AND REPRINTS REQUESTS TO: Melissa Jones, Manager, Marketing Communication, Phone: (703) 462-2207, e-mail: mjones@niri.org. REPRINT FEES PER ARTICLE: Electronic copy — Adobe Acrobat PDF file Authors only: $75, Members: $200, Nonmembers: $300 Web posting or e-mail distribution: $500 Hard copies: Quantity under 10: $10/copy Quantities 10–100: $5/copy May 2008 An estimate will be provided for quantities over 100. All prices are subject to a signed agreement.
  • 2. going public My Company and All I Got Went Public— Was This T-Shirt By Stephen Kilmer F ollowing a brief and as market by storm and, by it turned out mostly 1999, our stock was trading at unremarkable stint as 10x sales and our trading ratio an Investment Advisor at a on NASDAQ vs. the TSX was major Canadian brokerage, and easily 75/25. Then, without then as an account director warning, a severe and pro- at CCN Matthews (now tracted price war devastated Marketwire), I was directly the LASIK industry. While introduced to the wonderful we eventually went on to world of IR in 1997 by “win” (that is, to survive) the accepting the position of man- industry price war, our stock ager of investor relations with Toronto, Ontario-based “LASIK” eye was crushed beyond recognition and both the sell and buy sides surgery pioneer, TLC Vision Corporation. had gone from loving it to hating it and finally to just not wanting (Coincidentally, this was my first client win to ever think or speak about the stock again. while at CCN.) Then, after a very long time dutifully spent “thinking,” “salva- While I progressed on a rewarding and tion” finally came in the form of a $6 million investment that ulti- steady career path from manager to director mately gave TLC control of a Tampa, Florida-based private oph- to vice president at TLC, unfortunately thalmic device company, Vascular Sciences Corp, which was in the the company’s fortunes weren’t quite so process of developing a novel blood filtration procedure — RHEO smooth. The first years were marked by absolutely “hyper” busi- — to treat the dry form of an eye condition called age-related ness and stock price growth. The company had taken the U.S. macular degeneration (“Dry AMD”). The Florida company had a 8 may 2 0 0 8 investor relations update
  • 3. going public controversial past and retinal specialists were generally skeptical became very clear to me — quickly. Some 13 million people in the of both the company and its technology. The private managers, United States are afflicted with Dry AMD and about eight million therefore, had great difficulty raising the capital needed to com- could reasonably be expected to benefit from the RHEO proce- plete their clinical trials. dure. Large market. The “voodoo” quality of the RHEO The procedure consists of eight treat- procedure hadn’t, however, put TLC ments; each treatment required one off one bit. After all, it wasn’t too many disposable RHEO filter set that we our stock was years prior that a large percentage of crushed beyond planned on selling to service providers recognition eye doctors had dismissed LASIK as at $1,200.00 per. Therefore, every one and both the complete heresy — and very quickly sell and buy percent penetration into the available sides had gone LASIK grew to be the world’s most market would generate $768 million from loving widely-performed elective surgical pro- it to hating in treatment set sales (8 million eligible it to just not cedure. Everything we had seen in our patients x 1 percent x 8 treatment sets x wanting to ever clinical due diligence process, including think or speak $1,200). Keeping in mind that this was about it again. an interim analysis of the pivotal trial a Medicare-eligible patient population, data, led us to believe that the acquired there was no competing treatment and, company’s procedure was effective in if left untreated, patients faced losing treating Dry AMD. their vision and their independence. It followed that the investment thesis was extremely binary: If Needed: The Investment Story the full pivotal trial data was positive and the FDA approved the While we were convinced, external stakeholders largely ignored procedure, the market could be worth billions of dollars; if FDA the important corporate developments. The investment story declined, the market would be worthless. zu creates investor friendly websites. zu makes shareholders smile. Forget PDFs. Forget mail-outs. Go online. Our online annual reports and websites win international awards. Welcome to world-class investor relations. Welcome to zu. zu.com | online investor relations experts investor relations update M ay 2 0 0 8 9
  • 4. going public Initially as I tried to reach out to traditional money managers a month, and spent a few days in each place meeting exclu- to tell the RHEO story, it felt very much like I was talking into sively with locally-based hedge fund managers. I also launched the wind. Then it dawned on me: Given their compensation a hedge fund-dedicated “TLC World” e-news service to pro- structure and different approach to risk management, the then- vide extra historical, industry and scientific perspective for the emerging hedge fund community was much more likely to money managers; very quickly, I became the “go-to” person for embrace the RHEO opportunity. I had just read an article on hedge fund managers wanting to learn about anything that had the NIRI Web site arguing that, contrary to popular belief, less to do with AMD. than five percent of U.S. hedge funds had a short bias. And Let’s Do an IPO! despite this important fact, many IRO’s, CFO’s and CEO’s were After about ten months of this kind reportedly still reluctant to interact with of marketing to U.S. hedge funds, TLC’s them. I recognized that the added ben- stock had risen more than 500 percent. efit of targeting hedge funds was that I One day, feeling absolutely Herculean, wouldn’t be competing with very many Initially as I tried to I walked into my CEO’s office and pro- other issuers trying to get the same reach out to claimed that I could take our Vascular audience’s attention. traditional money managers Sciences subsidiary public if he and Hedge Fund Strategy to tell the RHEO story, it felt TLC’s board wanted me to. He agreed My strategy was to start very slowly, very much like I without too much hesitation, but made was talking into building relationships with the man- the wind. it conditional upon my personally man- agers of smaller hedge funds — with aging the transaction all the way from less than $50 million under manage- underwriter recruitment/selection, to ment — and vetting the company’s prospectus drafting, to road show design story with them. After some refinement, and execution — with the noted excep- the story became ready for prime-time and I turned to this tion of me having to give any public presentations on my own. I group of small hedge fund managers for personal introductions also had to continue being TLC’s sole IRO throughout the process. to the institutional sales desks and the respective personalities We decided to list the IPO on both NASDAQ and the TSX, the that they relied on most. latter largely in order to accommodate TLC’s by-now minority With the help of these sales desks, I organized and executed Canadian shareholder base. Vascular Sciences had no real infra- an “expert tour” with a knowledgeable and somewhat folksy structure of its own (no internal council and no permanent CFO) TLC optometrist from Oklahoma to [expertly, of course] dis- and didn’t have audited financial results. We were forced to run a cuss Dry AMD and the RHEO treatment with money managers. rather cumbersome dual process where we — the issuer’s council, We traveled to one or two major cities, usually once or twice underwriter’s council, the lead bankers and I — worked on the 10 may 2 0 0 8 investor relations update
  • 5. going public front part of the book while our interim CFO worked with the or moral obligation I have no choice but to take with me to the external auditors to complete the financial section. grave, we finally filed the S1 for the spin-out of Vascular Sciences — now renamed OccuLogix — in August 2004. Following Enter the Speculators SEC review of the document (OccuLogix was incorporated in About half way through drafting, conflicting speculation on Delaware), the drafting and filing of amendments, and more, our TLC’s plans for Vascular Sciences emerged. On one side, a large IPO road show was launched approximately 13 weeks later. The and well-known hedge fund reportedly initiated a significant tour brought us to 15 North American cities over 14 business short position in TLC, theorizing that no attempt would be days. Our original pricing range was $8-$10, but that was raised made to IPO the RHEO business and, even if there was, the IPO to $10-$12 about half way through marketing. We priced at $12 would fail. After establishing their position, they (according to (33 percent above the original filing mid-point), raising $100 reliable sources) paid or otherwise encouraged a small “inde- million at a post-money valuation of $525 million. pendent” research shop to put out a series of very negative and inflammatory reports on both TLC and the RHEO procedure. In Lesson: Tailor the Audience to the Message contrast, Canada’s national daily newspaper started to run uncon- By tailoring our audience to our message instead of the other firmed stories that an IPO was imminent and that the analysts way around, and by embracing non-traditional investment man- were expecting it to be a huge success. agers instead of running away from them, we were able to pull off the “impossible.” OccuLogix was reportedly the first non-FDA That T-Shirt approved/pre-revenue medical device company to successfully go This is about the time that the t-shirt comes in. A friend on public on a major U.S. exchange in over a decade. It was also the the sales desk of a lead underwriter sent me an over-the-top largest healthcare IPO in Canadian market history. Most impres- and once-in-a-lifetime invitation. Picture this opportunity for sively (I think), TLC achieved $295 million in aggregate cash the IRO of small-cap: The private helicopter picks me up in and paper gains — primarily from its Toronto and brings me to the front lawn retention of 53 percent of OccuLogix’ of a rented mansion in the fabled Long shares — through the OccuLogix IPO Island “Hamptons.” There, 20 or so of in return for its original $6 million America’s most successful and wealthiest To his credit, he did send investment. hedge fund managers, a few institutional me an official End of story: I moved exclusively to salespeople and this IRO are to enjoy a u.S. open T-shirt (two OccuLogix from TLC following the fully-catered weekend attending the U.S. sizes too IPO and, after many more twists and Open at nearby Shinnecock Hills Golf small) to “make up” for turns, recently left to co-found my own Club. I felt like a rock star! Because we my loss. IR agency in Toronto. While I feel had already engaged the underwriters, equally comfortable operating on both and TLC trusted me to keep our plans sides of the northern border, I believe for Vascular Sciences to myself, I was now that my true niche is in helping given the green light by management Canadian and other non-U.S. issuers to accept the invitation. My dreams successfully navigate and penetrate the U.S. capital markets. were quickly dashed when the bankers got wind of the plan. There were many hard-won lessons for me coming out of the They believed the risk that I might let something slip, however IPO — and I hope that NIRI IR Update readers can benefit from remote, wasn’t worth taking. They instructed the salesperson to some of the story as told here by a former corporate IRO. And, I un-invite me. To his credit, he did send me a t-shirt (two sizes am keeping the T-shirt. IRU too small) to “make up” for my loss. The OccuLogix IPO in 2004 Steve Kilmer is co-founder and managing partner of Kilmer-Lucas. E-mail him at stephen@kilmerlucas.com. Web site: www.kilmerlucas.com After an extraordinary amount of effort by all parties, and a series of underwriting group intrigue that out of legal and/ investor relations update M ay 2 0 0 8 11