Enthrust Becomes Rodman & Renshaw (EFSV, RODM)

Rodman & Renshaw, a boutique brokerage firm, has effectively come public via a reverse merger with a shell company.  The company has filed to sell up to $86.25 million in security sales.   The company acquired Enthrust Financial Services, Inc. (NASDAQ-OTC:EFSV) in a reverse merger earlier this month, but upon completion of this securities offering it will trade on NASDAQ under the ticker "RODM."   

Sandler O'Neill & Partners, L.P. will act as lead underwriter for the offering, and Rodman & Renshaw, Fox-Pitt Kelton, and Paulson Investment Company will act as co-underwriters for the offering.  Enthrust will continue to operate Rodman & Renshaw's current business under the leadership of Rodman & Renshaw's executive management team. Enthrust intends to change its name to Rodman & Renshaw Capital Group, Inc.  Rodman & Renshaw is a full service boutique investment bank.  Its AcumenBioFin(TM) division is an investment banking firm to the biotechnology sector, as well as a leader in the PIPE (private investment in public equity) and RD (registered direct placements) transaction markets.

R&R posted 2006 revenues of $63.958 million, and net income before unrealized gains from investments was $16.518 million.  For the forst quarter of 2007, R&R posted $20.69 million in revenues and net income before a $1 million reclassification charge of $6.82 million.  Due to the nature of a boutique operation and deal participation, these charges and items look like they will keep earnings on a net-net basis a bit volatile and that is quite normal for companies in this sector.

Jon C. Ogg
July 19, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.