OTC Markets Group, PR Newswire and the Investor Relations Society Bring their Successful “Trans-Atlantic Information Flow” Event to London
Speakers from easyJet and Shearman & Sterling join panel debate on Successful U.S. Investor Communications Strategies for European Companies
LONDON – July 21, 2015 – OTC Markets Group Inc. (OTCQX: OTCM) and PR Newswire were joined by the UK’s Investor Relations Society in welcoming senior investor relations professionals to the latest instalment of their successful “No Blank Screens” series. The goal of the breakfast forum was to help educate European companies with global vision about the OTCQX® Best and OTCQB® Venture Marketplaces in the US, and to provide guidance and best practice tips on effectively engaging US investors. The event was held in the historic, Grade II listed One Moorgate Place in central London on 2nd July.
More than 700 European-headquartered global companies are cross-traded in the US on off-exchange marketplaces, yet many fail to garner the US investor attention or trading volumes they seek. Compelling research - included within a white paper accompanying this event - demonstrates how issuers who actively engage with US audiences can realise average daily trading volumes 12 times higher than those of companies whose communication strategy remains focused on the home market.
“Trans-Atlantic Information Flow” included a panel discussion with Will MacLaren, Head of Investor Relations at easyJet PLC (LSE: EZJ; OTCQX:ESYJY), which trades on OTCQX in the US; PR Newswire Investor Relations Consultant Mark Hynes; Richard Price, Partner at international law firm Shearman & Sterling LLP; and John Gollifer, General Manager of the IR Society.
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Changing landscape
The US regulatory landscape has changed in recent years, according to Shearman & Sterling’s Richard Price. “U.S. markets are now much friendlier to foreign issuers,” he stated, referencing the landmark 2010 U.S. Supreme Court ruling in Morrison -vs- National Australia Bank as a key development. Against this backdrop, companies must negotiate ongoing changes in both the technology used to reach their key audiences, as well as the very nature of those audiences.
As PR Newswire’s Hynes explained, identifying existing and prospective investors is not always easy. “Social media does represent a valuable way to build a conversation, but the traditional media is still very firmly linked with the strategies of institutional investors. A wider broadcast approach is essential.”
Not a burden
For a company like easyJet, such additional distribution does not represent a burden, according to IR chief Will MacLaren. “What we send out for OTCQX is exactly what we send to the local market in London,” he explained.
IROs should take care not to forget the potential for investment outside of the traditional hubs, however. “US investment capital is not only centred in Manhattan. It’s everywhere,” MacLaren said.
According to the IR Society’s John Gollifer, communicating with this wide audience can be managed with a blend of new technology and more traditional means. “Virtual conferences can be a very useful tool in speaking to a large and disparate audience, but face-to-face meetings are still hugely important.”
“In an increasingly global world, European companies with US-traded securities can’t afford to remain quiet,” said Jason Paltrowitz, Managing Director and Global Head of Business Development at OTC Markets Group. “Engagement begins with ensuring your company trades alongside its peers on a top US marketplace like OTCQX and OTCQB and distributing your news and financial disclosure widely in the US. Together, these actions can be a springboard to increasing your visibility with US investors and broadening your US shareholder base by assuring they have the information they need to make smart investment decisions.”
“These events are a valuable way to help European issuers learn from the experience of companies such as easyJet,” said Lisa Ashworth, President, EMEA & India, PR Newswire. “Cross trading on OTCQX represents such a simple way of reaching the world’s largest investment market. With a well-judged communications strategy, the rewards can be significant. ”
About OTC Markets Group Inc.
OTC Markets Group Inc. (OTCQX: OTCM) operates Open, Transparent and Connected financial marketplaces for 10,000 U.S. and global securities. Through our OTC Link® ATS, we directly link a diverse network of broker-dealers that provide liquidity and execution services for a wide spectrum of securities. We organize these securities into marketplaces to inform investors of opportunities and risks: the OTCQX® Best Marketplace; the OTCQB® Venture Marketplace; and the OTC Pink® Open Marketplace. Our data-driven platform enables investors to easily trade through the broker of their choice at the best possible price and empowers a broad range of companies to improve the quality and availability of information for their investors. To learn more about how we create better informed and more efficient financial marketplaces, visit www.otcmarkets.com.
OTC Link ATS is operated by OTC Link LLC, member FINRA/SIPC and SEC regulated ATS.
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About PR Newswire
PR Newswire (www.prnewswire.co.uk) is the leading global provider of PR and corporate communications tools that enable clients to distribute news and rich content across traditional, digital and social media channels in real time with full actionable reporting and monitoring.
Producing, optimising and targeting news and content across the world’s largest multichannel distribution network and offering the most accurate and frequently updated opted in journalist databases for over 60 years PR Newswire has a truly global reach serving clients across EMEA, India, the Americas and Asia-Pacific. PR Newswire is part of UBM plc
About The Investor Relations Society
The Investor Relations Society represents members working for public companies and consultancies to assist them in the development of effective communication with financial markets and to create a level playing field for all investors. It has over 700 members drawn both from the UK and overseas, including the majority of the FTSE 100 and much of the FTSE 250.