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REDLEAF RELATIONS A GUIDE TO IMPROVING YOUR SHAREHOLDER BASE


REDLEAF RELATIONS HOW TO MARKET YOUR SHARES

MARKETING YOUR SHARES


IMPROVING YOUR SHAREHOLDER BASE

Small and mid cap quoted companies and investment funds, whether listed on AIM or the main market, often have quite a small or illiquid shareholder base. A few institutional investors, or the founding shareholders, own a significant amount of the company and there is little or no aftermarket in the company’s shares. Consequently, the company’s shares are overlooked by the broader investment community and the share price stagnates, often regardless of the company’s performance. Redleaf Relations specialises in providing companies like yours with a highly professional service that is designed to attract and retain the interest of a wide range of professional investors. This, in turn, results in: › A BETTER UNDERSTANDING OF YOUR COMPANY AND ITS AMBITIONS AMONG THE WIDER INVESTOR COMMUNITY › A LARGER NUMBER OF LONG-TERM SHAREHOLDERS WHO HAVE A GENUINE INTEREST IN YOUR BUSINESS AND SECTOR › INCREASED LIQUIDITY – OR MARKETABILITY – OF YOUR COMPANY’S SHARES › A BETTER REPUTATION FOR YOUR COMPANY AMONG THE MARKET AS A WHOLE AND MORE INTEREST IN YOUR NEWS AS IT IS ANNOUNCED › A BIGGER APPETITE FOR SMALLER PARCELS OF STOCK, MEANING THAT YOU ARE NOT ALWAYS RELYING ON THE SAME HOLDERS › EFFICIENT MANAGEMENT AND, WHERE SENSIBLE, REDUCTION OF RETAIL INVESTOR BASE The Redleaf Relations service complements the activities of your broker and corporate finance adviser … and with more than 40 active and satisfied clients, the service is proven to deliver value above and beyond its cost.


REDLEAF RELATIONS WHAT WE DO

WHAT WE DO


Redleaf Relations offers four highly specialised services, each of which is designed to make being a quoted company more satisfying, for both management and shareholders alike.

PCFM MARKETING

There are more than 1,500 Private Client and Regional Fund Managers (PCFM) in the UK, working at around 500 PCFM firms and, between them, they are responsible for managing more than £370 billion of assets – mostly on behalf of high net worth individuals. PCFMs are based all over the UK, not just in London, and have more limited access to the traditional “City-based” fundraising rounds. Redleaf Relations has expert knowledge of the PCFM market – who they are; where they are; what they need; and, critically, why and what they invest in – meaning that we can present your company to this market in the best light.

PCFM FUNDRAISING PROGRAMMES

To ensure a good aftermarket in your company’s shares, you should never restrict your fundraising activities solely to the usual institutional investor groups. Include the PCFM community when you are seeking expansion or acquisition capital, and you are far more likely to broaden your shareholder base, increase interest in your company and engender greater, longer term loyalty among holders.

PROXY ADMINISTRATION

When major transactions are contemplated, it’s important to make sure that all shareholders are fully informed. Ensuring a thorough market-wide understanding of the Board’s view and voting intentions can be crucial to securing the desired outcome. Redleaf Relations proxy services are designed to assist you with message development, shareholder identification, proxy management and more.

LISTING MANAGEMENT

When a company chooses to move from AIM to the Full List – or vice versa – the move can result in significant changes to the shareholder base. Correct planning and management of such moves is essential to ensuring a positive share price reaction. The Redleaf Relations team is well versed in understanding the impact of such moves and can help you to ensure a smooth transition.


REDLEAF RELATIONS PCFM FUNDRAISING PROGRAMMES

PCFM FUNDRAISING PROGRAMMES


CLEVER FUNDRAISING

PCFMs are an often over-looked source of quality fundraising opportunities. “Out of London” sometimes means “Out of Mind” as far as some broking houses are concerned. Redleaf Relations specialises in using its PCFM knowledge to help companies to tap into the more than £390 billion managed by PCFMs in the UK. Our fundraising service includes: › WORKING CLOSELY WITH YOUR CORPORATE BROKER TO DEVELOP THE FUNDRAISING PROGRAMME AND TO ENSURE THERE’S NO OVERLAP AND THAT ALL MESSAGES ARE CONSISTENT › DEVELOPING A TARGETED APPROACH WHERE WE FOCUS ON PCFMs THAT WE KNOW HAVE AN INTEREST IN YOUR MARKET SECTOR OR COMPANY TYPE › STRUCTURE, ORGANISE AND MANAGE ROADSHOWS THAT ALLOWS YOU TO MAKE YOUR PITCH TO THE BEST POSSIBLE PCFM AUDIENCE › PREPARATION OF ALL PRESENTATION DOCUMENTS, ATTENDANCE AT MEETINGS AND ON CONFERENCE CALLS, AND PREPARATION OF OBJECTIVE FEEDBACK REPORTS Although a new and relatively little known service, Redleaf Relations PCFM fundraising programmes are proven to be effective and we can provide case histories and client testimonials to support our claims.


REDLEAF RELATIONS ANNUAL PROGRAMME

ANNUAL PROGRAMME

THE THREE STAGES

Our PCFM programme is designed in three distinct stages – research, recruit, retain – each of which has a crucial role to play in attracting and maintaining interest in your company’s shares.


RESEARCH

During the first month of the programme, we will: › CONDUCT A THOROUGH REVIEW OF YOUR SHAREHOLDER REGISTER AND IDENTIFY CURRENT PCFM HOLDERS › UNDERTAKE A DETAILED PERCEPTION AUDIT AMONG THE PCFM COMMUNITY › DEVELOP KEY COMPANY MESSAGES AND A DETAILED PRESENTATION, THAT CAN BE USED TO INFLUENCE PCFMs › PREPARE A SUMMARY CORPORATE FACTSHEET THAT HIGHLIGHTS THE COMPANY’S MAIN FEATURES AND BENEFITS AND WHICH PROMOTES THE INVESTMENT CASE › RESEARCH AND DRAFT FORMAL PRESENTATION PACKS FOR USE DURING PCFM ROADSHOWS

RECRUIT

Next we will work with you to: › TARGET THE RIGHT PCFMs INVESTORS AND PROVIDE THEM WITH THE INFORMATION THAT THEY NEED › SECURE MEETINGS WITH A SERIES OF PCFMs ACROSS THE UK, ATTEND THE MEETINGS AND MAKE SURE THAT PCFM FEEDBACK IS CAPTURED AND COMMUNICATED › ANALYSE MOVEMENTS IN THE SHARE REGISTER FOLLOWING PCFM MEETINGS AND PREPARE REPORTS FOR YOU AND YOUR BROKER

RETAIN

Having secured the interest of the PCFM community, it’s essential that a dialogue is maintained. Throughout the programme we will: › HIGHLIGHT RNS ANNOUNCEMENTS, DRAWING OUT THE KEY POINTS, AND COMMUNICATE THEM TO THE PCFMs › HIGHLIGHT GENERAL TRADE AND BUSINESS PRESS COVERAGE, AGAIN DRAWING OUT THE KEY POINTS, AND ENSURE PCFMs ARE AWARE OF THE NEWS › PREPARE AND DISTRIBUTE NEWSLETTERS AND OTHER INFORMATION ABOUT THE COMPANY, AS APPROPRIATE › BE ON HAND TO HELP AND ADVISE YOU IN YOUR RELATIONS WITH PCFMs


REDLEAF RELATIONS PROXY ADMINISTRATION/ LISTING MANAGEMENT

PROXY ADMINISTRATION/ LISTING MANAGEMENT


PROXY ADMINISTRATION

Redleaf Relations’ proxy administration service comes into its own when the outcome of a shareholder vote may be uncertain. We can help to ensure that all shareholders are contacted and that they understand management’s views and the company’s message. At the start of the project we conduct a full share register review to detect institutions, PCFMs and private holders. Then we work hard to ensure we have the correct contact details for each. We work with you to develop the messages you wish to communicate and then we begin a determined programme of telephone contact with all target shareholders. Weekly progress reports ensure that you are kept in touch with feedback and provide the knowledge needed to adjust messages as time goes on.

LISTING MANAGEMENT

If your company decides to move from AIM to the main market – or vice versa – it’s critical to ensure that shareholders are kept fully informed and, when possible, retained on the share register. In any move of this type there will always be investors who wish to exit – and new investors who wish to come onboard. Active management of the process is important to ensure that positive interest – and the share price – are maintained. Redleaf Relations can help you by: reviewing the shareholder register to determine the likely level of churn; contacting holders to understand their views about the planned change; ensuring that complete and relevant messages are communicated to existing and potential holders. And, at the end of the project, we’ll supply you with a detailed report so that you can accurately judge the value of our work.


For more information about how Redleaf Relations can help you maximise the benefits of a more informed and loyal shareholder base, or for assistance with PCFM fundraising, proxy administration or listing management, please contact Melissa Davison on 020 7822 0200 or e-mail her at: md@redleafpr.com REDLEAF RELATIONS LIMITED 11-33 ST JOHN STREET LONDON EC1M 4AA TEL: 020 7822 0200 FAX: 020 7822 0201 WWW.REDLEAFPR.COM Redleaf Relations Limited is a sister company to Redleaf Communications Limited, one of the City of London’s fastest growing financial and corporate public relations specialists. Redleaf Communications Limited manages proactive financial PR campaigns for more than 100 AIM and main market listed companies.


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