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Public Capital Markets

Our public capital markets team has the experience, domain expertise and relationships that set us apart from other advisors.

We are a leading advisor to micro-cap, small-cap and mid-cap public companies in the private placement of structured debt and equity securities (PIPEs).  
With traditional retail public offerings severely curtailed in recent years, PIPEs have become the overriding choice of equity financing for public companies.  PIPE transactions provide more rapid access to capital and greater control and discretion in the process of issuing equity.  Confidentiality, combined with lower expenses, and reduced management time away from day-to-day operations highlight the many reasons PIPEs have become the preferred means of securing capital.

We also assists private companies with strong operating histories and growth potential to become publicly listed companies in the U.S. via reverse merger transactions.  

A reverse merger results in a public market for a company’s stock, which facilitates capital raising, diversification of investors to include institutional and retail investors, and trading liquidity.

Success calls for a financial advisor with well-established relationships with capital providers – we meet this criteria and our investor base is actively seeking direct investment opportunities with growth-oriented companies demonstrating a strong business plan, high quality management, and clear revenue momentum.

Our public capital markets team offers the following expertise:

  • Among the most active PIPE advisors having closed over 30 placements since 2003 totaling approximately $325 million in capital raised for growth companies with market caps below $500 million
  • Extensive relationships with reputable and active global investors including hedge funds, crossover funds, private equity and late stage venture capital firms, and accredited individual investors
  • Deep domain expertise in the PIPE and reverse merger investment market, ensuring a custom-tailored placement with the right investors, structured to meet a company’s financing needs including growth capital, acquisition financing, and recapitalizations
  • Multifaceted advisory support before and after the funding effort to help management build shareholder value, including assistance with legal, accounting, public shells, market making, investor relations, and research coverage
  • Global presence in China, the U.K. and Europe focused on assisting overseas companies to access U.S. public capital markets
 

Zhongpin, Inc. (NASDAQ:HOGS) is a meat and food processing company that specializes in pork and pork products, and fruits and vegetables in the People's Republic of China (PRC).  The company is a leading enterprise in developing a nationally recognized high quality brand for meats and food products through a brand image that appeals to the new Chinese middle class lifestyle.  Zhongpin estimates 2008 revenues of $550  million and net income of $35 million, up from $291 million in revenues and $18.5 million of net income in 2007.

Zhongpin has a complete state-of-the-art vertically-integrated fresh meat and meat products supply chain from farming, slaughtering, cutting, processing and wholesaling to retailing. The Company’s advanced logistic system includes integration and coordination of the transportation, warehouse management and inventory control systems as well as the integration of its marketing and manufacturing. Its customers include Wal-Mart, Metro, KFC, Carrefour, and McDonalds. Zhongpin’s also exports its products to the European Union, Eastern Europe, Russia, Hong Kong, Japan, and South Korea.

TerraNova Relationship In 2005, Zhongpin was a privately-held company in need of capital to implement an aggressive growth strategy to facilitate distribution of its products in over 2,500 grocery stores throughout China. The company retained TerraNova in mid-2005 to implement a financial strategy to access the US public capital markets. 

Beginning in 2005, TerraNova, through its broker-dealer subsidiary European American Equities, Inc., provided comprehensive investment banking services to the company, which resulted in a reverse merger with a U.S. listed company and a $27.6 million private placement  with U.S. institutional investors in February 2006.  TerraNova, through its broker-dealer subsidiary European American Equities, Inc., also acted as co-agent for the company on a $50.0 million private placement in October 2007.

For additional information, go to http://www.zpfood.com