Once public and capitalized, the company must have a plan to properly communicate to the capital markets on a consistent basis.

This includes:

• Setting up road shows and investor interviews;
• Attracting appropriate investors and fund managers to the company;
• Achieving and planning for an optimal spread in buying and selling, giving sufficient liquidity to the shares;
• Drafting investor newsletters on a monthly basis;
• Drafting market announcements when necessary;
• Working with the exchange officials to ensure they are fully informed of all reportable events in the company;
• Monitoring trading.  In a public market, understanding who is buying and selling can lead to lower volatility.

Constant communication with shareholders is a must when building a fast growth company. Some investors are long term holders, others are taking trading positions. Either way, providing consistent and clear communications will increase shareholder value and decrease price volatility, both of which are important for further fund raisings on the equity markets.

Market makers or market specialists can drive trading volume, and therefore liquidity, up dramatically.  Increased liquidity in the shares of a company makes direct investments easier to close and often results in a significantly higher stock price.  Stanmore Capital’s investor relations and banking knowledge along with its contacts can be used to execute a strategy to recruit market makers and improve liquidity.