SmallCap Public Relations – The Gift That Keeps On Giving
In a new post on IRMagazine.com, Jeffrey Goldberger of KCSA Strategic Communications discussed “Public relations: The lifeline for clinical-stage micro-cap pharma companies.”
According to Goldberger, the lack of news flow (especially microcap life science companies) results in lower stock price and trading volume which ultimately decreases a microcap companies ability to raise equity capital.
There are three traditional IR chances for every microcap company to communicate with shareholders; 1. Earnings (four times per year), 2. Wall Street-sponsored and industry conferences (four or five times per year), and 3. Business milestone updates.
So, how can small & microcap companies stay in the news cycle when they don’t have a lot of exciting updates to talk about?
The answer, smallcap public relations!
Goldberger writes “There is no better way for a [smallcap] company to overcome the dearth of organic news flow than by becoming part of a larger discussion.”
In almost every industry, especially those like phrama and technology, there are a lot of news and conversations happening every day. For example, there are thousand of news articles being written in main stream media every day on the role of blockchain in finance, controversy over artificial intelligence, gene editing, and more.
Small and MicroCap managment teams would benefit greatly by participating in those broad conversations that relate to the niche in which their business operates. For example, Goldberger writes “While a specific company may be working on utilizing gene editing to address a specific disease, the overall story about gene editing is much broader – ethics, approaches, overall cost of healthcare, current treatments, patient stories and the like.”