The line between investor relations and marketing for over-the-counter traded companies has been blurred over the past 10 years or so. As an executive of an OTC markets traded company, you have probably gotten dozens of emails from marketing companies, seeing you eyeballs to your stock, liquidity, increased volume and sometimes….an increased stock price. Buyer beware!
Professional investor relations companies traditionally do not focus their efforts on marketing a company stock, rather they focus on telling investors the company’s story and keeping an open dialogue between the company and investors. Here are a few tactics that’ll TC companies should utilize when engaging with an investor relations campaign:
Dedicated Phone Line: Having a dedicated phone line for shareholders or potential investors to call is a way to not tie up the corporate line and still have investors be able to reach the company.
Regularly Scheduled Press Releases: disseminating information about the company regularly via press releases allows investors to stay informed and it limits the need for investors to reach out to the company with questions. Being proactive with information is always better then withholding information and waiting for investors to reach out.
Shareholder Events: This can be as simple as a shareholder call or as elaborate as a shareholder events at your headquarters or a set location. We recently threw a shareholder event for notc company clients. The reaction was wonderful as shareholders love the ability to engage with employees and executives to ask questions. They also get to see the company firsthand and this is priceless as many companies trading over-the-counter do not have operations.
Engagement on Social Media: In 2012 we were already pioneers in Social Media Investor Relations. Today it may seem normal, but companies are still using social media wrong. Many of them use it as a megaphone to distribute news when it really should be used as a telephone to communicate with potential shareholders in existing shareholders. The ability to have direct discussions with investors online is one of the golden opportunities of social media. Take advantage of it.
When done correctly, investor relations does not just keep the investing public informed about your company, it creates General market awareness about your products, services and even where your OTC company is going in the future. Need help? Cervitude IR can help. Contact us for a free consultation with our IR experts.