01 · Challenge
The Challenge
Enthusiast Gaming had just closed a transformational acquisition that nearly quadrupled its revenue and raised expectations for future growth. Even so, the stock was bound in a range around C$1.50 with daily trading volume of ~140K shares, despite sell-side coverage from five firms. Management wanted to grow its U.S. investor base by communicating the company’s story and its post-acquisition opportunities more broadly and directly.
02 · Solution
Our Solution
- Overhauled the company’s messaging and marketing collateral, simplifying the story and focusing on growth drivers
- Implemented investor segmentation reporting and metrics to provide guidance and best allocate management’s time
- Led four non-deal roadshows with a mix of micro-cap specialists who could make quick buy decisions and high-quality, medium-term institutional investors to build a pipeline for future support
- Introduced management to higher-tier investment banks for advice on executing a Nasdaq listing
- Advised on the investor conference call for the transformational acquisition
03 · Impact
The Impact
- Stock price increased 533%, from C$1.50 at engagement to a high of C$9.50 in five months, with average daily liquidity of 560K shares, or C$5.3 million
- The company raised C$59M at C$5.75 per share in February 2021, compared with C$30M raised at C$1.50 per share in August 2020, saving more than $1M
- One of Hayden IR’s introductions took an initial position of 900,000 shares
- Two new analysts initiated coverage
Past results are not indicative of future performance. Figures are as reported in Hayden IR’s case study for Enthusiast Gaming. See our disclosures.
