SOURCE: Capital Insight Partners

July 14, 2008 16:08 ET

Capital Insight Partners: Non-Traditional Capital Raising Requires New Era Investor Relations

CHICAGO, IL--(Marketwire - July 14, 2008) - Capital Insight Partners ( cautions companies using non-traditional strategies to raise growth and operating capital that they need a long-term plan to communicate their goals and strategies to their investors and to Wall Street or risk sagging stock values and sagging public opinion.

The net effect is a company with new capital, but unhappy shareholders and analysts.

"Any company -- particularly a small-cap company -- that wants to maintain a semblance of investor attention needs to be zealous about communications," said Tad Gage, executive vice president of Capital Insight Partners, in a recently published white paper.

"If management isn't absolutely dedicated to a long-term communication strategy, the company is likely to be under-loved, under-followed and have no visibility," Gage explained.

Companies are losing valuable opportunities to showcase themselves to Wall Street and to Main Street because the after-market communication tools of institutional sales -- market making and research coverage, for example -- are performed by traditional investment banks accessible only to the largest corporations.

As long as a stock is traded on a public exchange, there are significant potential benefits to keeping open the lines of communication to the investment community. What company doesn't want additional investors, increased trading volume, improved liquidity, and more attention from potential stakeholders?

Even the smallest publicly held company can communicate like a Fortune 500 firm. An effective after-market investor outreach and communication program employs skilled investor relations professionals to assist with news releases, credible company-sponsored equity research, and virtual and in-person investor meetings.

Capital Insight Partners (, an investor relations, financial communications and capital markets advisor, aids companies in today's landscape where after-market outreach has shifted to individual companies.

By serving the full spectrum of investor relations and corporate financing requirements for micro and small-cap corporations, Capital Insight Partners helps build a growing, diversified shareholder base, resulting in contented early-stage investors and improving its odds to obtain additional financing should the need arise.

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