01 · Challenge
The Challenge
When Hayden IR began representing interclick on March 1, 2010, the stock traded at $4.01 and the market cap was $99 million. As the stock began trading higher, older shareholders exited and the shareholder base needed to turn over, and the company later went through a management change during a hyper-growth period as well as a potential lawsuit.
02 · Solution
Our Solution
- Introduced new investors to the stock to manage turnover of the shareholder base as earlier holders exited
- Arranged non-deal roadshows in approximately nine cities featuring more than 60 targeted, face-to-face introductions with qualified investors
- Initiated and institutionalized a program of callbacks to the top 10 shareholders and research analysts after quarterly conference calls
- Began a retail program to activate RBC retail brokers coast to coast
- Supported the company through a management change and a potential lawsuit, minimizing share price erosion in each situation
- Coordinated an analyst day for investors to learn more about the company’s long-term strategy and potential
03 · Impact
The Impact
- Yahoo! announced on November 1, 2011 that it would acquire interclick for $9.00 per share, 124% above the $4.01 stock price at engagement; the acquisition was completed on December 14, 2011
- Share price rose 80%, from $4.01 (March 1, 2010) to $7.21 (October 18, 2011), and market cap increased from $99 million to approximately $178.2 million
- Three new research analysts initiated coverage and two more considered coverage
- Retail brokers with positions in the stock grew from zero to 20
- Trading volume more than doubled from Q3 2010 to Q3 2011
- Approximately 7.5M shares moved out of the top 15 positions, and two directors sold a total of 2 million shares, yet strong demand kept the stock price more than 50% above the engagement price
Past results are not indicative of future performance. Figures are as reported in Hayden IR’s case study for interclick, inc. See our disclosures.
