Search "Biotech Micro Caps Offer Promise of Mighty Returns"
DH: Most recently, in the life sciences space, we did a deal for nutritional supplement company,MusclePharm Corp.
We did the offering in January and the deal closed at the beginning of February. The company had about $65M in sales for the trailing 12 months and a $12M premoney valuation, in an industry where companies typically trade at about 1x revenue. There was a lot of interest in the company, and the deal was significantly oversubscribed.
MusclePharm’s management team is particularly good at building a brand, and had been doing a great job of marketing. Though the managers had not been able to show they were capable of producing a profit, they did demonstrate a willingness to move toward that goal, which gave us the comfort we needed to raise money. With a focus on driving profitability and continuing to grow sales in 2013, we thought it was a very good opportunity for investors..