The chore of drumming up interest in new stock issues - an investor relations headache which typically involves a costly road show - can now be done more efficiently on the World Wide Web.
Bb-NET Investor Relations, a start-up based in Silver Spring, Md., for a starting price of $1,290 (roughly an eighth of the cost of a road show), will create a "virtual road show" that uses video, slides, and audio narration to walk potential investors through the issuing company's vitals.
Two Washington, D.C., area businesses - one a medical services firm and the other a microbrewery, are already offering stock to the public using Bb-Net's site for reaching potential investors.
"Using the Internet, people can provide their investors with the information they need to make the right financial decisions," said Kevin Spiddle, co-owner of Bb-Net.
The site allows for RealAudio press releases, product announcements, fast loading pictures, animated slide shows, Quicktime movies/slides of products or services and financial statements. PR and consulting firms can even advertise on the Bb-Net for free.
Primary Care Centers of America, a chain of medical practices based in Silver Spring, recently began a doubly innovative offering of $1 million worth of stock. Primary Care Centers is not only selling stock over the Internet, it is selling the shares directly to the public.
For Primary Care Centers, Bb-Net has created a virtual road show that is a multimedia version of the presentations that are normally given to Wall
Street analysts, mutual fund managers and other potential investors by PR consultants preparing to sell stock for the first time.
"Why fly executives around the country when you can move electrons instead?" said Marc Beauchamp, a consultant for Kearns & West, a Washington communications and consulting firm.
January 17, 1997_ng the Internet, you can reach more than just financial analysts in major capital centers - and do it for a tiny fraction of the cost of a road show."
Bardo Rodeo, an Arlington, Va., brew-pub that wants to grow into a microbrewery, is seeking regulatory approval to sell $3 million to $4.8 million worth of stock in the new Bardo Brewing Co. Net surfers can find the brewers at http://www.Bardorodeo.com. The Primary Care Centers offering can be checked out at http://www.bb-net.com, the Web site for Bb-NET Investor Relations. (Bb-Net, 301/939-2415, Bardo Rodeo, 703/876-9012, Primary Care Centers 202/806-6270)