Roth Capital Partners: Difference between revisions
Cypresscross (talk | contribs) move CEO title up to where it belongs |
add more barrons refs. not much point saying that someone said nothing. not all of this is criticism - better to write it all as a history |
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'''ROTH Capital Partners, LLC''' is a small [[investment banking]] firm<ref>{{cite news|url=https://dealbook.nytimes.com/2014/06/18/elon-musks-halo-effect/?_r=0|title=Elon Musk’s Halo Effect|last1=Swann|first1=Christopher|date=18 June 2014|accessdate=29 March 2015|newspaper=The New York Times}}</ref> headquartered in [[Newport Beach, California]].<ref name=":0">{{Cite news|url=https://nypost.com/2007/02/05/roth-capitals-leaze-to-please/|title=ROTH CAPITAL’S $LEAZE TO PLEASE|date=2007-02-05|newspaper=New York Post|access-date=2018-05-19|language=en-US}}</ref> Since inception in 1984, ROTH has been a small and [[microcap stock]] underwriter.<ref name=":0" /> |
'''ROTH Capital Partners, LLC''' is a small [[investment banking]] firm<ref>{{cite news|url=https://dealbook.nytimes.com/2014/06/18/elon-musks-halo-effect/?_r=0|title=Elon Musk’s Halo Effect|last1=Swann|first1=Christopher|date=18 June 2014|accessdate=29 March 2015|newspaper=The New York Times}}</ref> headquartered in [[Newport Beach, California]].<ref name=":0">{{Cite news|url=https://nypost.com/2007/02/05/roth-capitals-leaze-to-please/|title=ROTH CAPITAL’S $LEAZE TO PLEASE|date=2007-02-05|newspaper=New York Post|access-date=2018-05-19|language=en-US}}</ref> Since inception in 1984, ROTH has been a small and [[microcap stock]] underwriter.<ref name=":0" /> |
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The company has been widely criticized for its underwriting practices and the deals it has promoted. <ref name=":1" /><ref>{{Cite news|url=https://www.wsj.com/articles/SB10001424127887324073504578114421922362286|title=Reversing Course on China|last=Chu|first=Kathy|date=2012-11-12|work=Wall Street Journal|access-date=2018-07-29|language=en-US|issn=0099-9660}}</ref><ref>{{Cite news|url=https://www.barrons.com/articles/SB50001424052970204304404575449812943183940|title=Beware This Chinese Export|last=Norton|first=by Bill Alpert and Leslie P.|access-date=2018-07-29|language=en-US}}</ref> |
The company has been widely criticized for its underwriting practices and the deals it has promoted. <ref name=":1" /><ref>{{Cite news|url=https://www.wsj.com/articles/SB10001424127887324073504578114421922362286|title=Reversing Course on China|last=Chu|first=Kathy|date=2012-11-12|work=Wall Street Journal|access-date=2018-07-29|language=en-US|issn=0099-9660}}</ref><ref name="Barrons">{{Cite news|url=https://www.barrons.com/articles/SB50001424052970204304404575449812943183940|title=Beware This Chinese Export|last=Norton|first=by Bill Alpert and Leslie P.|access-date=2018-07-29|language=en-US}}</ref> |
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The firm was featured in the 2017 financial documentary ''[[The China Hustle]]'' for its underwriting relationships with dubious Chinese companies that led to crisis-level losses for American stockholders in the wake of the [[2008 financial crisis]] while making windfall profits for the firm,<ref name=":3">{{Cite web|url=http://www.latimes.com/entertainment/movies/la-et-mn-capsule-the-china-hustle-review-20180329-story.html|title=Financial documentary 'The China Hustle' details alleged U.S.-China collusion|last=Goldstein|first=Gary|website=latimes.com|access-date=2018-05-19}}</ref><ref name=":2">{{Cite news|url=https://www.reuters.com/article/us-shell-china/special-report-chinas-shortcut-to-wall-street-idUSTRE7702S520110801|title=Special Report: China's shortcut to Wall Street|last=Editorial|first=Reuters|work=U.S.|access-date=2018-07-29|language=en-US}}</ref> and for hosting what has been described as "bacchanals" in which emerging companies woo investors amid topless models<ref name=":0" /> and extravagant music acts such as [[Kid Rock]], [[Pitbull (rapper)|Pitbull]] and [[Snoop Dogg]].<ref>{{Cite news|url=http://www.nbcnews.com/id/11521750/ns/business-cnbc_tv/t/conferences-mix-business-hip-hop-pop/#.WwBAIEgvyUk|title=Conferences mix business with hip-hop, pop|date=2006-02-23|work=msnbc.com|access-date=2018-05-19|language=en}}</ref><ref>{{Cite news|url=https://www.theglobeandmail.com/arts/film/article-jed-rothsteins-the-china-hustle-pulls-back-the-curtain-on-a-new/|title=Jed Rothstein’s The China Hustle pulls back the curtain on a new ticking time bomb in the financial markets|access-date=2018-06-13}}</ref> |
The firm was featured in the 2017 financial documentary ''[[The China Hustle]]'' for its underwriting relationships with dubious Chinese companies that led to crisis-level losses for American stockholders in the wake of the [[2008 financial crisis]] while making windfall profits for the firm,<ref name=":3">{{Cite web|url=http://www.latimes.com/entertainment/movies/la-et-mn-capsule-the-china-hustle-review-20180329-story.html|title=Financial documentary 'The China Hustle' details alleged U.S.-China collusion|last=Goldstein|first=Gary|website=latimes.com|access-date=2018-05-19}}</ref><ref name=":2">{{Cite news|url=https://www.reuters.com/article/us-shell-china/special-report-chinas-shortcut-to-wall-street-idUSTRE7702S520110801|title=Special Report: China's shortcut to Wall Street|last=Editorial|first=Reuters|work=U.S.|access-date=2018-07-29|language=en-US}}</ref> and for hosting what has been described as "bacchanals" in which emerging companies woo investors amid topless models<ref name=":0" /> and extravagant music acts such as [[Kid Rock]], [[Pitbull (rapper)|Pitbull]] and [[Snoop Dogg]].<ref>{{Cite news|url=http://www.nbcnews.com/id/11521750/ns/business-cnbc_tv/t/conferences-mix-business-hip-hop-pop/#.WwBAIEgvyUk|title=Conferences mix business with hip-hop, pop|date=2006-02-23|work=msnbc.com|access-date=2018-05-19|language=en}}</ref><ref>{{Cite news|url=https://www.theglobeandmail.com/arts/film/article-jed-rothsteins-the-china-hustle-pulls-back-the-curtain-on-a-new/|title=Jed Rothstein’s The China Hustle pulls back the curtain on a new ticking time bomb in the financial markets|access-date=2018-06-13}}</ref> |
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The firm was founded by Walter Cruttenden III in 1977. When Byron Roth later joined, the firm was renamed Cruttenden Roth.<ref name=":1">{{Cite news|url=http://articles.latimes.com/1998/nov/12/business/fi-41849|title=Founder Leaves, Passing Reins at Cruttenden Roth|last=O'DELL|first=JOHN|date=1998-11-12|work=Los Angeles Times|access-date=2018-07-25|language=en-US|issn=0458-3035}}</ref> |
The firm was founded by Walter Cruttenden III in 1977. When Byron Roth later joined, the firm was renamed Cruttenden Roth.<ref name=":1">{{Cite news|url=http://articles.latimes.com/1998/nov/12/business/fi-41849|title=Founder Leaves, Passing Reins at Cruttenden Roth|last=O'DELL|first=JOHN|date=1998-11-12|work=Los Angeles Times|access-date=2018-07-25|language=en-US|issn=0458-3035}}</ref> |
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== Criticism of Underwriting Practices == |
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=== Aviation Distributors === |
=== Aviation Distributors === |
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In 1998 the [[Los Angeles Times]] reported that Roth had been criticized for its underwriting practices, citing the company's role in the initial public offering of Aviation Distributors Inc., which later faced multiple shareholder lawsuits alleging the company had manipulated it's revenues in order to boost the company's stock price. The company initially went public at $5 per share and later traded as high at $12.88 per share before falling to just 97 cents per share following the announcement of the lawsuits.<ref name=":1" /> |
In 1998 the [[Los Angeles Times]] reported that Roth had been criticized for its underwriting practices, citing the company's role in the initial public offering of Aviation Distributors Inc., which later faced multiple shareholder lawsuits alleging the company had manipulated it's revenues in order to boost the company's stock price. The company initially went public at $5 per share and later traded as high at $12.88 per share before falling to just 97 cents per share following the announcement of the lawsuits.<ref name=":1" /> |
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=== Involvement with Chinese reverse mergers === |
=== Involvement with Chinese reverse mergers === |
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In August 2010, Barron's reported that Roth's promotional materials |
In August 2010, Barron's reported that Roth's promotional materials claimed that it had "pioneered" the practice of [[PIPE Financing|PIPE financing]] and had helped raise more than $2.8 billion for 67 U.S.-listed Chinese companies.<ref name="Barrons"/> |
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In 2011, [[Reuters]] reported that Roth had become a leading investment bank underwriting Chinese reverse mergers which lead to a number of "spectacular" collapses of Chinese stocks listed on American exchanges and cost U.S. investors billions of dollars and that lead to multiple investigations.<ref name=":4" /> |
In 2011, [[Reuters]] reported that Roth had become a leading investment bank underwriting Chinese reverse mergers which lead to a number of "spectacular" collapses of Chinese stocks listed on American exchanges and cost U.S. investors billions of dollars and that lead to multiple investigations.<ref name=":4" /> |
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==== China Green Agriculture ==== |
==== China Green Agriculture ==== |
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Barron's also cited questions raised by investors about Orient Paper, China Natural Gas and China Green Agriculture, firms underwritten by Roth, and which were later investigated for fraud by the SEC.<ref>{{Cite news|url=https://www.thestreet.com/story/10971670/1/sec-probing-china-green.html|title=SEC Probing China Green Ag|last=Eden|first=Scott|date=2011-01-12|work=TheStreet|access-date=2018-07-29|language=en-US}}</ref> |
Barron's also cited questions raised by investors about Orient Paper, China Natural Gas and China Green Agriculture, firms underwritten by Roth, and which were later investigated for fraud by the SEC.<ref name="Barrons"/><ref>{{Cite news|url=https://www.thestreet.com/story/10971670/1/sec-probing-china-green.html|title=SEC Probing China Green Ag|last=Eden|first=Scott|date=2011-01-12|work=TheStreet|access-date=2018-07-29|language=en-US}}</ref> |
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==== China Biotics ==== |
==== China Biotics ==== |
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One of Roth's clients, China Biotics, was delisted from the [[NASDAQ]] in June 2011, just months after Roth helped the company raise more than $79 million from U.S. investors. China Biotics’ auditor, BDO, subsequently resigned after making accusations that the company had falsified documents, overstated the company's assets and that irregularities it discovered "likely constitute illegal acts." In October 2011 the SEC suspended trading in China-Biotics.<ref>{{Cite news|url=https://www.wsj.com/articles/SB10001424052970204294504576617210287567804|title=Trading Suspended in Another China Firm|last=Rapoport|first=Michael|date=2011-10-08|work=Wall Street Journal|access-date=2018-07-29|language=en-US|issn=0099-9660}}</ref> |
One of Roth's clients, China Biotics, was delisted from the [[NASDAQ]] in June 2011, just months after Roth helped the company raise more than $79 million from U.S. investors. China Biotics’ auditor, BDO, subsequently resigned after making accusations that the company had falsified documents, overstated the company's assets and that irregularities it discovered "likely constitute illegal acts." In October 2011 the SEC suspended trading in China-Biotics.<ref>{{Cite news|url=https://www.wsj.com/articles/SB10001424052970204294504576617210287567804|title=Trading Suspended in Another China Firm|last=Rapoport|first=Michael|date=2011-10-08|work=Wall Street Journal|access-date=2018-07-29|language=en-US|issn=0099-9660}}</ref> |
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== Feature in The China Hustle Documentary == |
== Feature in The China Hustle Documentary == |
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Revision as of 21:37, 31 July 2018
| File:ROTH.jpg | |
| Company type | Private |
|---|---|
| Industry | Finance and insurance |
| Founded | 1984 |
| Headquarters | California, USA |
Key people | Byron Roth (Chairman and CEO) |
| Products | Investment banking Financial services |
| Revenue |  US $ 55 million (2007) |
Number of employees | 135 (2007) |
| Website | www.roth.com |
ROTH Capital Partners, LLC is a small investment banking firm[1] headquartered in Newport Beach, California.[2] Since inception in 1984, ROTH has been a small and microcap stock underwriter.[2]
The company has been widely criticized for its underwriting practices and the deals it has promoted. [3][4][5]
The firm was featured in the 2017 financial documentary The China Hustle for its underwriting relationships with dubious Chinese companies that led to crisis-level losses for American stockholders in the wake of the 2008 financial crisis while making windfall profits for the firm,[6][7] and for hosting what has been described as "bacchanals" in which emerging companies woo investors amid topless models[2] and extravagant music acts such as Kid Rock, Pitbull and Snoop Dogg.[8][9]
History
The firm was founded by Walter Cruttenden III in 1977. When Byron Roth later joined, the firm was renamed Cruttenden Roth.[3]
Aviation Distributors
In 1998 the Los Angeles Times reported that Roth had been criticized for its underwriting practices, citing the company's role in the initial public offering of Aviation Distributors Inc., which later faced multiple shareholder lawsuits alleging the company had manipulated it's revenues in order to boost the company's stock price. The company initially went public at $5 per share and later traded as high at $12.88 per share before falling to just 97 cents per share following the announcement of the lawsuits.[3]
Involvement with Martin Shkreli
In September 2016 it was reported that former hedge fund manager and a convicted felon Martin Shkreli had difficultly accessing public markets for capital, but that he received a $4 million series A funding round and a PIPE deal valued at $10 million underwritten by Roth. After obtaining the financing through Roth, Shkreli was able to acquire rights to the drugs Thiola and Chenodal and subsequently raise the price of each drug substantially, with Thiola subsequently being marked up nearly 20 fold and Chenodal about five fold.[10][11]
Involvement with Chinese reverse mergers
In August 2010, Barron's reported that Roth's promotional materials claimed that it had "pioneered" the practice of PIPE financing and had helped raise more than $2.8 billion for 67 U.S.-listed Chinese companies.[5]
In 2011, Reuters reported that Roth had become a leading investment bank underwriting Chinese reverse mergers which lead to a number of "spectacular" collapses of Chinese stocks listed on American exchanges and cost U.S. investors billions of dollars and that lead to multiple investigations.[12]
China Green Agriculture
Barron's also cited questions raised by investors about Orient Paper, China Natural Gas and China Green Agriculture, firms underwritten by Roth, and which were later investigated for fraud by the SEC.[5][13]
China Biotics
One of Roth's clients, China Biotics, was delisted from the NASDAQ in June 2011, just months after Roth helped the company raise more than $79 million from U.S. investors. China Biotics’ auditor, BDO, subsequently resigned after making accusations that the company had falsified documents, overstated the company's assets and that irregularities it discovered "likely constitute illegal acts." In October 2011 the SEC suspended trading in China-Biotics.[14]
Feature in The China Hustle Documentary
The firm was also featured in the 2017 financial documentary The China Hustle for its underwriting relationships with dubious Chinese companies that led to crisis-level losses for American stockholders in the wake of the 2008 financial crisis while making windfall profits for the firm.[6][7]
Bacchanals
The firm's promotional activies have been compared to the lavish parties of Drexel Burnham Lambert’s of the mid-1980s, which were nicknamed “The Predator’s Ball”.[15] In February 2007, The New York Post reported that Roth took several hundred of its clients to a Cancun-meets-Wall Street-themed lollapalooza. The primary feature of Roth’s event was the presence of “several dozen” topless Asian models, with the ticker symbols of the companies Roth underwrote body-painted on.[15]
In August, 2011, Reuters reported that the firm, just hours after the Public Company Accounting Oversight Board issued a warning about Chinese reverse mergers, for which Roth was a leading underwriter, threw a “Miami Glam” party in which guests were surrounded by rhinestone-encrusted sculptures of leopards while bikini-clad hostesses served cotton candy as rapper Pitbull put on a concert.[12]
See also
External links
References
- ^ Swann, Christopher (18 June 2014). "Elon Musk's Halo Effect". The New York Times. Retrieved 29 March 2015.
- ^ a b c "ROTH CAPITAL'S $LEAZE TO PLEASE". New York Post. 2007-02-05. Retrieved 2018-05-19.
- ^ a b c O'DELL, JOHN (1998-11-12). "Founder Leaves, Passing Reins at Cruttenden Roth". Los Angeles Times. ISSN 0458-3035. Retrieved 2018-07-25.
- ^ Chu, Kathy (2012-11-12). "Reversing Course on China". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-07-29.
- ^ a b c Norton, by Bill Alpert and Leslie P. "Beware This Chinese Export". Retrieved 2018-07-29.
- ^ a b Goldstein, Gary. "Financial documentary 'The China Hustle' details alleged U.S.-China collusion". latimes.com. Retrieved 2018-05-19.
- ^ a b Editorial, Reuters. "Special Report: China's shortcut to Wall Street". U.S. Retrieved 2018-07-29.
{{cite news}}:|first=has generic name (help) - ^ "Conferences mix business with hip-hop, pop". msnbc.com. 2006-02-23. Retrieved 2018-05-19.
- ^ "Jed Rothstein's The China Hustle pulls back the curtain on a new ticking time bomb in the financial markets". Retrieved 2018-06-13.
- ^ "ROTH Capital Partners acts as Co-Lead Placement Agent for Retrophin, Inc. in its $25M PIPE financing". www.roth.com. Retrieved 2018-07-27.
- ^ Donato, Nicholas (2016-09-07). "RTRX: Pharma Bro Speaks Out On Kidney Drug". Benzinga. Retrieved 2018-07-27.
- ^ a b Editorial, Reuters. "Special Report: China's shortcut to Wall Street". U.S. Retrieved 2018-07-29.
{{cite news}}:|first=has generic name (help) - ^ Eden, Scott (2011-01-12). "SEC Probing China Green Ag". TheStreet. Retrieved 2018-07-29.
- ^ Rapoport, Michael (2011-10-08). "Trading Suspended in Another China Firm". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-07-29.
- ^ a b "ROTH CAPITAL'S $LEAZE TO PLEASE". New York Post. 2007-02-05. Retrieved 2018-05-19.
