At Broadmark Capital, we think like investors and collaborate like

At Broadmark Capital, we think like
investors and collaborate like partners.
WHAT WE DO
Broadmark Capital is an established, boutique merchant bank that provides
financing and management services and direct investment to help emerging
companies grow and create shareholder value.
TRACK RECORD
For 20 years, Broadmark has raised capital, invested and advised on transactions
with an aggregate value of well over $1 billion - but our experience runs deeper.
Our success reflects a comprehensive understanding of the challenges companies
face in raising capital and our long-term relationships with investors who trust us
to structure mutually advantageous financing opportunities.
APPROACH
Broadmark’s core strength is its intense focus on understanding clients’
businesses and shaping financing opportunities to reflect their companies’
strengths and the ever-changing priorities of the capital markets. We are
deeply involved with our clients’ businesses. As a merchant bank, we also
invest directly in many of our client companies. That means that every
decision we make reflects the shared interests of our firm and yours.
KEY POINT OF DIFFERENCE
2800 One Union Square
600 University St.
Seattle, WA 98101-4123
For some banks, your business is just another “deal.” When you engage
Broadmark, you gain an ally that will support you through every stage of
the financing process - and perhaps an investor. When transactions prove
unusually challenging, our resourceful team will sit around the conference
room table with you and drill down on your project to develop creative
strategies to help facilitate a successful round of financing. And Broadmark
will continue adding value to your business even after the financing is
complete, providing valuable insight and hands-on support as your company
continues to grow.
tel: (206) 623-1200
fax: (206) 623-2213
email: [email protected]
© 2010 Broadmark Capital, LLC. All Rights Reserved.
SERVICES
MERCHANT BANKING
Broadmark provides a range of corporate finance services to
address the evolving needs of client companies as they grow
and capitalize their businesses.
As merchant bankers, we don’t just coach.
We play for your team.
Broadmark Capital is more than an investment bank. It is a team of established and tenacious experts who identify
companies’ overlooked strengths and help leverage them into shareholder value. Our dedication to completing
each transaction and our deep experience in corporate finance help us deliver optimal results for each client.
We focus on venture-stage and middle-market technology and life sciences companies because we have domain
expertise that positions us to identify their potential and help them grow.
CORPORATE FINANCE ADVISORY SERVICES
MERCHANT BANKING
Executives want to know that their banker cares as much about their success as they do. We want to grow a great
company just as much as you do. When we invest in a company, we are endorsing its prospects and taking an
interest in its success. This shared interest helps us build even stronger relationships with our clients, who depend
on our resources and advice to take the uncertainty out of financing, allowing them to focus on their companies’
core strategies. Because we look at companies as both investors and advisors, we are ideally situated to help them
obtain the capital and support they need.
We have the experience and tenacity to see you through every stage of the financing process, from strategy to closing.
Broadmark is a key resource and a potent ally for companies. We approach every engagement with open minds
and a talent for identifying value propositions others might overlook. Our wide-ranging success and unique
accessibility make us a reliable partner for client companies facing challenges that demand professional financial
expertise. Before we engage a client, we conduct exhaustive due diligence and learn about the company’s
particular goals, strengths and weaknesses. That’s why our partners rely on us whenever they need corporate
finance advice.
EQUITY & DEBT FINANCING
WHY WORK WITH A MERCHANT BANK?
Whether you represent a small company seeking its first round of venture capital or private equity/mezzanine
financing or an established firm contemplating a merger or acquisition, you will benefit from Broadmark’s dual role
as investor and banker. Simply put, we want to protect our investment. That means we are committed to learning
the ins and outs of a client company and helping it in any way possible. As investors with decades of experience in
corporate finance, we ask questions that will help you improve your business and remove from your plate many of
the complex responsibilities associated with financing and growing an emerging company. And by partnering with
clients in this way, we provide a level of value and collaboration that traditional investment banks cannot.
Broadmark’s past achievements have prepared us to help identify appropriate domestic and international investors and
develop the ideal structuring for your transaction.
Our success is grounded in a unique dedication to problem solving. We approach every project like a Rubik’s
Cube, twisting and turning it to explore every combination of variables until we arrive at a solution. We are always
accessible to our clients and prepared to support their businesses at every stage, from identifying investors to advising
on the timing and configuration of an offering. Our rich network, borne of years working in corporate finance, helps
us stay abreast of market trends and represent every client firm in a way that reflects its unique strengths.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
TRANSACTIONS
TRANSACTIONS
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
$1,225,000
Private Placement
March 2012
$885,000
Private Placement
December 2012
$883,000
Private Placement
December 2012
$1,235,000
Private Placement
December 2012
$15,300,000
Private Placement
June 2008
$75,000,000
M & A Advisory
June 2012
Advisory Assignment
March 2012
$72,000,000
M & A Advisory
August 2011
$1,000,000
Private Placement
March 2011
$5,500,000
Private Placement
December 2007
Private Placement
April 2008
£8,300,000 IPO
November 2007
$7,600,000
Private Placement
March 2008
Principal Investment
December 2007
$18,000,000
Private Placement
August 2007
Principal Investment
June 2007
$2,800,000
Private Placement
January 2007
$63,000,000
Private Placement
January 2007
Steeplechase
Capital Advisors
LLC
$3,000,000
Private Placement
December 2010
Provided Fairness Option
Relating to Sale
December 2010
Principal Investment
August 2010
$25,000,000
Private Placement
August 2010
$6,000,000
Private Placement
May 2007
$40,000,000
Private Placement
May 2007
Renaissance Parc
55 Hotel
Principal Investment
July 2010
Principal Investment
June 2010
$3,525,000
Private Placement
June 2010
$68,000,000
IPO
October 2009
Principal Investment
January 2007
$696,000
Private Placement
January 2007
Advisory Assignment
December 2006
Principal Investment
December 2006
Private Placement
August 2008
Principal Investment
August 2008
Advisory Assignment
June 2006
$16,000,000
Private Placement
June 2006
$6,000,000
Private Placement
March 2006
$2,150,000
Private Placement
March 2006
Vista Note
Holdings, LLC
CRS,LLC
$3,000,000
Private Placement
August 2009
Asset Sale
June 2009
© 2010 Broadmark Capital, LLC. All Rights Reserved.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
TRANSACTIONS
TRANSACTIONS
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
Principal Investment
March 2005
Principal Investment
December 2004
$15,000,000
Private Placement
October 2004
$5,000,000
Private Placement
August 2004
Advisory Assignment
October 2002
Advisory Assignment
September 2002
Advisory Assignment
July 2002
$3,650,000
Private Placement
July 2002
$15,000,000
Private Placement
August 2004
M&A Advisory
August 2004
M&A Advisory
June 2004
Fairness Opinion
April 2004
Advisory Assignment
May 2002
$15,000,000
Private Placement
April 2002
$7,500,000
Private Placement
April 2002
Advisory Assignment
March 2002
$8,205,279
Private Placement
January 2004
$3,650,000
Private Placement
January 2004
$2,000,000
Private Placement
November 2003
Fairness Opinion
September 2003
Fairness Opinion
January 2002
$5,000,000
Private Placement
December 2001
$9,000,000
Private Placement
September 2001
Advisory Assignment
July 2001
Career Engine
Network
$1,000,000
Private Placement
August 2003
M&A Advisory
July 2003
$500,000
Private Placement
July 2003
$2,500,000
Private Placement
May 2003
$5,000,000
Advisory Assignment
July 2001
$8,000,000
Private Placement
July 2001
Advisory Assignment
May 2001
$6,000,000
Private Placement
April 2001
$4,982,502
Private Placement
November 2000
$2,087,000
Private Placement
November 2000
$2,000,000
Private Placement
September 2000
EDT Learning
$500,000
Private Placement
February 2003
Advisory Assignment
January 2003
Fairness Opinion
January 2003
$9,000,000
Private Placement
November 2002
© 2010 Broadmark Capital, LLC. All Rights Reserved.
Advisory Assignment
March 2001
© 2010 Broadmark Capital, LLC. All Rights Reserved.
TRANSACTIONS
TRANSACTIONS
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
Motivation Online!
$12,000,000
Private Placement
August 2000
$26,000,000
Private Placement
July 2000
$11,000,000
Private Placement
July 2000
Principal Investment
July 2000
$14,100,000
Private Placement
May 1999
$5,000,000
Private Placement
February 1999
$6,000,000
Private Placement
February 1999
$4,500,000
Private Placement
December 1999
BroadAsia Partners
LLC
$500,000
Private Placement
June 2000
$5,300,000
Private Placement
May 2000
$5,000,000
Private Placement
May 2000
$3,601,122
Private Placement
April 2000
onradio
$177,100,000
Private Placement
April 2000
$5,000,000
Private Placement
March 2000
M&A Advisory
March 2000
$30,000,000
Private Placement
January 2000
$50,000,000
Private Placement
December 1998
$2,317,000
Private Placement
December 1998
Leading Edge
Packaging, Inc.
Inland Financial
Corporation
Pacific Financial
Services
Corporation
Advisory Assignment
December 1998
M&A Advisory
October 1998
M&A Advisory
October 1998
$6,000,000
Private Placement
June 1998
M&A Advisory
December 1997
Pacific Financial
Services
Corporation
Altris Software
M&A Advisory
November 1999
$10,422,745
Private Placement
November 1999
Internet Capital
Group
Broadmark Asset
Management
Company
$199,320,000
IPO
August 1999
$2,170,000
Private Placement
July 1999
Fairness Opinion
October 1999
$25,000,000
Private Placement
June 1999
M&A Advisory
December 1998
$25,000,000
Private Placement
December 1998
$25,000,000
Private Placement
September 1999
$8,500,000
Private Placement
May 1999
© 2010 Broadmark Capital, LLC. All Rights Reserved.
$4,200,000
Private Placement
March 1998
M&A Advisory
January 1998
CAD $1,287,687
Private Placement
December 1997
Focused Products,
Inc.
Jay Jacobs Inc.
Pacific Linen
Advisory Assignment
December 1997
Advisory Assignment
December 1997
$3,500,000
Private Placement
December 1997
$952,500
Private Placement
November 1997
© 2010 Broadmark Capital, LLC. All Rights Reserved.
TRANSACTIONS
TRANSACTIONS
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
$3,000,000
Private Placement
February 1997
$505,922
Private Placement
August 1996
Advisory Assignment
January 1997
M&A Advisory
August 1996
PC Fixx
SAVI
Business Computer
Training Institute
Community Medical
Transport Inc.
Mirage
Communications
Corporation
Weir-Jones
Automotive Inc.
$503,125
Private Placement
December 1996
Fairness Opinion
September 1996
Advisory Assignment
September 1994
$4,000,000
Private Placement
September 1994
M&A Advisory
March 1994
$1,900,000
Private Placement
February 1994
The Coffee Station
The Little Gym
International Inc.
alamar Biosciences
Inc.
alamar Biosciences
Inc.
oh la la!
$767,250
Private Placement
July 1996
$1,225,000
Private Placement
May 1996
M&A Advisory
December 1993
$3,451,000
Private Placement
November 1993
$1,500,000
Private Placement
November 1993
$1,200,000
Private Placement
September 1993
Children’s
Broadcasting
Corporation
Oak Harbor
Communications
Inc.
M&A Advisory
July 1993
M&A Advisory
July 1993
Black Health
Medical Centers
$2,200,000
Private Placement
February 1996
CAD $1,000,000
Private Placement
January 1996
$6,500,000
Private Placement
January 1996
Advisory Assignment
January 1996
$6,500,000
Private Placement
September 1993
$558,000
Private Placement
July 1993
oh la la!
$3,000,000
Private Placement
October 1995
$400,000
Private Placement
September 1995
$7,187,500
Private Placement
August 1995
Advisory Assignment
June 1995
The Little Gym
International Inc.
$4,700,000
Private Placement
December 1994
$2,250,000
Private Placement
December 1994
Advisory Assignment
October 1994
$2,500,000
Private Placement
September 1994
© 2010 Broadmark Capital, LLC. All Rights Reserved.
Ardial Groupe
securipost
$700,000
Private Placement
July 1993
Advisory Assignment
April 1993
Privatization
April 1993
Privatization
April 1993
Enchanted Parks,
Inc.
KLDY Inc.
alamar Biosciences
Inc.
Deringer Mfg.
Company
Advisory Assignment
February 1993
M&A Advisory
December 1992
$4,250,000
Private Placement
October 1992
Advisory Assignment
October 1992
© 2010 Broadmark Capital, LLC. All Rights Reserved.
TRANSACTIONS
TRANSACTIONS
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
Laboratoires OPSIA
Quality
Broadcasting
Corporation
Traitement
Synthese Image
777 Broadcasting,
Inc.
Broadmark
Holdings Inc.
CM Cold Storage
DLMD, S.A.
M&A Advisory
June 1992
FRF 4,500,000
Private Placement
June 1992
M&A Advisory
October 1990
M&A Advisory
October 1990
$13,300,000
M&A Advisory
October 1990
M&A Advisory
October 1990
Adhesion & Associés
Royal King
Trawlers, Inc.
GENLOG S.A.
prisme
FRF 22,000,000
Private Placement
October 1992
$2,500,000
Private Placement
June 1992
VMG Enterprises
Inc.
Harron
Communications
Corporation
M&A Advisory
June 1992
M&A Advisory
May 1992
M&A Advisory
April 1992
FRF 3,080,000
Private Placement
April 1992
$15,200,000
M&A Advisory
October 1990
CAD $840,000
Private Placement
October 1990
FRF 7,000,000
Private Placement
June 1990
FRF 18,000,000
Private Placement
June 1990
Country Gold
Network
Classic Country
Radio, Inc.
Security Pacific
Capital Corporation
Dune Technologies
B & B Broadcasting
L.P.
Bingham
Communication
Group
groupe ITN
M&A Advisory
March 1992
M&A Advisory
March 1992
M&A Advisory
January 1992
M&A Advisory
September 1991
FRF 3,500,000
Private Placement
May 1990
M&A Advisory
April 1990
Advisory Asssignment
December 1989
FRF 2,200,000
Private Placement
September 1989
Unidentified Plastic
Manufacturing
Company
MC-Radio Olympia,
Inc.
Help Ministries Inc.
Wasatch Education
Systems
Royal Seafood Co.
Dermatologic
Research
Corporation
Parc Fifty Five
$14,000,000
M&A Advisory
September 1991
M&A Advisory
August 1991
M&A Advisory
April 1991
M&A Advisory
August 1989
M&A Advisory
July 1989
$827, 500
Private Placement
June 1989
Advisory Assignment
June 1989
Logitech, S.A.
Chorus Systems
CD Broadcasting
Corp. of Maui
Stouffer Madison
Hotel
Bingham
Communication
Group
Exploration Cruise
Lines
GPG Associates
M&A Advisory
April 1991
FRF 15,000,000
Private Placement
March 1991
M&A Advisory
December 1990
Advisory Assignment
April 1989
Advisory Assignment
December 1988
Advisory Assignment
September 1988
$17,300,000
M&A Advisory
September 1988
M&A Advisory
July 1991
M&A Advisory
January 1991
© 2010 Broadmark Capital, LLC. All Rights Reserved.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
TRANSACTIONS
TRANSACTIONS
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
FlexLINK
International
Corporation
FlexLINK
International
Corporation
Ceramic Binder
Systems Inc.
M&A Advisory
September 1988
$882,050
Private Placement
August 1988
$987,500
Private Placement
May 1988
$513,000
Private Placement
November 1987
International
Biomedics, Inc.
Renaissance GRX
Performance
Graphics
Renaissance GRX
Performance
Graphics
The Prudential VMG
Holdings Corp.
$4,381,000
Private Placement
July 1987
$9,703,000
IPO
June 1987
$1,100,000
Private Placement
June 1987
For Principal Investments, Broadmark invests through a separate, related entity.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
TRANSACTIONS
TRANSACTIONS
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
XSHARES GROUP LLC.
OMEROS CORP.
CLIENT: XSHARES GROUP LLC.
CLIENT: OMEROS CORP.
SECTOR: FINANCIAL SERVICES
SECTOR: BIOPHARMACEUTICAL
TRANSACTION:
SERIES C PREFERRED
$23.5 MILLION
TRANSACTION:
XShares Group LLC (“XShares”) is a financial services firm focused on developing exchange-traded funds and other
specialty financial products. XShares Advisors LLC, its wholly owned subsidiary, provides investment advisory
services to exchange-traded funds. To take advantage of expanding demand for ETFs, the company offers proprietary
or jointly-developed ETFs exploiting promising niches organized by sector, geography, or financial/legal attribute; a
“private label” ETF business and the creation of ETFs within a money manager’s existing investment mandate. Like
other asset management firms, (e.g. Fidelity, Vanguard, etc.), XShares generates revenue by earning a percentage of
assets under management (“AUM”) from each ETF for which it acts as the investment advisor.
Through a related entity, Broadmark was an investor in XShares’ Series B financing in early 2007. Since that time,
Broadmark has been deeply involved in building XShares and has facilitated a number of international financing
rounds for the company including an $18-million transaction in August 2007 and a $5.5-million financing in
December 2007. Joseph L. Schocken, President of Broadmark, currently serves as a Director of the company.
Omeros is a late-stage biopharmaceutical company developing a broad intellectual property platform across a range
of technologies. Broadmark first became involved with Omeros as an investor in an earlier round of financing. When
Omeros engaged Broadmark to work on the Series E financing, Omeros sought to raise between $10 million and
$20 million to support Phase 3 clinical trials for its lead product, OMS103HP. Because of the product’s revolutionary
nature – it could fundamentally change the way a type of medicine was practiced – it was quite challenging to
market the investment opportunity. Broadmark worked with Omeros’ management to create marketing materials
and develop a message that would communicate the upside of the investment opportunity to both institutional
and accredited individual investors. After closing on the first $20 million, there remained substantial demand from
investors and additional business opportunities for the company to pursue. In consultation with Broadmark, Omeros
decided to raise additional capital. In the first quarter of 2007, Omeros successfully closed on a $63M financing and
has since filed an S-1 with Deutsche Bank for an IPO.
ZYNEX MEDICAL HOLDINGS, INC.
HIPCRICKET INC.
CLIENT: ZYNEX MEDICAL HOLDINGS, INC.
CLIENT: HIPCRICKET INC.
SECTOR: MEDICAL DEVICES
SECTOR: MOBILE MARKETING
TRANSACTION:
SERIES E PREFERRED $63 MILLION
IPO (LSE:HIP.L)
TRANSACTION:
£ 8.3 MILLION
HipCricket Inc. specializes in producing interactive mobile marketing campaigns for radio, television, brand and
agency clients. The company drives revenue and strengthens audience involvement by tapping into the behaviors
and interests of the more than 136 million Americans who use text messaging. Since its launch in 2004, HipCricket
has delivered outstanding results for the biggest brands and broadcast groups in the U.S., including Clear Channel
Radio, Premiere Radio Networks, Cumulus Radio, Triad Broadcasting Company, Perry Broadcasting Inc., Press
Communications, Sandusky Broadcasting, Katz Media Group, Beasley Communications, Bonneville International,
Cox Radio, Media General, NBC, Coca-Cola, Staples, and Hershey’s.
Through a related entity, Broadmark was one of the founding investors in HipCricket. Since that time, Broadmark has
been deeply involved in building HipCricket and developing its corporate strategy. Broadmark facilitated a number of
domestic and international financing rounds for the company including, most recently, an IPO in London. Joseph L.
Schocken, President of Broadmark, currently serves as the company’s Chairman.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
PIPE ~$1 MILLION
Through its wholly-owned subsidiary, Zynex Medical, Inc., Zynex Medical Holdings, Inc. designs, manufactures and
markets a line of FDA and HealthCanada approved, non-invasive products for the electrotherapy market, including
NeuroMove TM , a unique product for stroke rehabilitation (http://www.neuromove.com). Zynex uses a direct sales
force to market its standard electrotherapy and stroke rehabilitation products to both physicians and patients.
The standard electrotherapy market was estimated to be $400 to $500 million annually, with moderate growth.
However, in stroke rehabilitation, Zynex recognized that penetrating an untapped potential market of more than 4
million stroke survivors in the U.S. could create a $1.2-billion sales opportunity with annual growth of $100 million.
Its marquee product, NeuroMove, helps rehabilitate stroke patients by “training” healthy cells to compensate for
those lost or damaged in a stroke. Zynex sought Broadmark’s help raising a small financing round to expand its sales
and marketing teams, with the goal of increasing domestic and international market penetration in both the stroke
rehabilitation and standard electrotherapy markets. Broadmark successfully facilitated the Private Placement at a
price per share of $0.32 in January 2007. On March 5, 2008, the stock reached a high of $1.85 per share.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
TRANSACTIONS
TRANSACTIONS
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
These companies knew how Broadmark’s track
record could help them. Look how it paid off.
SOUND PHARMACEUTICALS
ELIAS ARTS
CLIENT: SOUND PHARMACEUTICALS
CLIENT: ELIAS ARTS
SECTOR: BIOPHARMACEUTICAL
SECTOR: MEDIA PRODUCTION
TRANSACTION:
TRANSACTION:
PRINCIPAL INVESTMENT
SENIOR DEBT $ 6 MILLION
Sound Pharmaceuticals is a Seattle-area biopharmaceutical company focused on developing drugs to prevent and
treat various forms of hearing loss. According to the company, roughly 30 million to 40 million Americans suffer from
this condition, but there are currently no FDA-approved pharmaceutical therapies. The company recently announced
that its lead product, SPI-1005, has entered Phase 2 clinical trials. Broadmark has served as an informal advisor to the
company’s management team; our primarly role has been as an active investor.
For 20 years, Elias Arts has been a leader in providing music and sound production services to the commercial
television advertising market. Its attention to quality, longstanding customer relationships and focus on the upper end
of the market has resulted in over 600 industry awards. In November 2005, Elias Arts engaged Broadmark to raise $5
million to $6 million to recapitalize the company’s existing balance sheet and provide working capital for ongoing
expansion. Broadmark successfully secured a $6 million senior debt facility for Elias Arts in March 2006.
MEDIQUEST THERAPEUTICS
CARDIOMETRIX
CLIENT: MEDIQUEST THERAPEUTICS
CLIENT: CARDIOMETRIX
SECTOR: BIOTECHNOLOGY
SECTOR: MEDICAL DEVICES
TRANSACTION:
TRANSACTION:
SERIES A PREFERRED $16 MILLION
MediQuest is a recently recapitalized company engaged primarily in leveraging applications of Amphi-Matrix, a
topical drug delivery platform that can deliver pharmaceuticals through toughened skin and nails. At the time of
Broadmark’s engagement, the company had been in business for more than 10 years without attracting institutional
capital. Consequently, its balance sheet was weak and it depended on existing accredited individual investors for
periodic infusions of funding. In the summer of 2005, a local institutional investor offered MediQuest $1 million
towards a $13- to $15-million private placement. Unable to raise the balance of the funding, the company engaged
Broadmark that December. This was a difficult transaction: The company’s balance sheet was weak, and the relatively
small number of institutional investors interested in dermatology products perceived that the offer had already been
“shopped.” (Institutional investors favor companies developing potential “home run” therapies for common diseases.)
Broadmark worked with MediQuest’s management to restructure the pitch, focusing on the limited downside risk of
this particular drug development process and the company’s modest valuation compared to the likely valuation and
timing of a potential IPO. By bringing this reworked offer to non-traditional institutional investors including large
mutual funds and hedge funds interested in late-stage, low-risk opportunities in the healthcare sector, Broadmark
facilitated a $16-million financing for MediQuest in June 2006.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
SERIES A PREFERRED $2.15 MILLION
CardioMetrix is a medical device start-up developing an endovascular sensor for use in managing congestive heart
failure. Because it is minimally invasive, the product’s sensor is not adversely affected by endothelization. Another
key strength is that the product is powered remotely, obviating the need for an internal power source. CardioMetrix
engaged Broadmark to raise $2 million to $3 million in Series A Preferred equity financing. Broadmark rarely
works with life science start-ups because of the high barriers to placement, but after completing due diligence,
we recognized the value of the unique product and knew which investors would be most likely to appreciate
the opportunity. Broadmark identified two Small Business Investment Companies seeking early-stage medical
device companies, and helped secure the first $1.075-million tranche in November 2005. In June 2006, after the
company successfully completed certain investor-defined technical milestones, the company closed on the second
$1.075-million tranche to complete the $2.15-million offer.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
THE TEAM
THE TEAM
Broadmark Capital, LLC is a merchant bank that
raises capital, advises and invests directly in client
companies to create shareholder value.
Broadmark Capital, LLC is a merchant bank that
raises capital, advises and invests directly in client
companies to create shareholder value.
THE TEAM
JOSEPH L. SCHOCKEN, PRESIDENT
Since 1987, we have consistently helped companies raise capital and develop strategies that improve their financial
positions. This work has earned us a reputation for recognizing and partnering with high-quality companies poised
for growth. We target early- to mid-stage companies in technology and life sciences, but we have deep experience
and extensive networks in a variety of industries. Our services are equally diverse: We have completed transactions
ranging in size from below $5 million to larger than $100 million, delivered fairness opinions and consulted on
mergers and acquisitions.
Mr. Schocken is the founder and president of Broadmark
Capital, LLC and its predecessor, Broadmark Capital
Corporation.
Our unique approach to partnering with companies we believe in, developing long-term relationships and finding
creative solutions to complex problems has established Broadmark as an indispensable resource for firms seeking
to grow in a challenging and complex environment.
BROADMARK CAPITAL TEAM
Joseph L. Schocken, President
Adam J. Fountain, Principal
With over 30 years as an investment banker, Mr.
Schocken has extensive knowledge of the financial
services industry and established relationships with
both strategic and institutional investors in the United
States and internationally. He has guided Broadmark’s
corporate finance practice through more than 75 private
equity transactions with an aggregate value of well
over $1 billion. These projects have included private
placements, debt offerings, mergers, asset purchases and
public offerings in a broad array of industries including
technology, life science, broadcasting and travel.
Prior to forming Broadmark Capital in 1987, Mr. Schocken was a partner in several private investment banking
firms, including a small New York Stock Exchange member firm where he managed the corporate finance and real
estate departments.
Andy Campbell, Analyst
CYCLING
Broadmark sponsors the Broadmark Capital Lake Washington Velo Track Cycling Team, a newly established
amateur cycling team. More information can be found at www.broadmarktrack.com . From 2001 through 2006,
Broadmark was the title sponsor of the Broadmark Cycling Team, the successful amateur road racing team based in
the Pacific Northwest. For more information go to www.hagensbermancycling.com .
Throughout his career as an investment banker, Mr. Schocken has also been an active private investor and has
worked with a number of exceptional entrepreneurs.
As an investor, board member and mentor, Mr. Schocken has played a pivotal role in the development of numerous
significant enterprises. Notable examples include Bennett Environmental (AMEX: BEL), Optiva (acquired by
Phillips) and Universal Access, Inc. (NASDAQ: UAXS). In each case, Mr. Schocken served as an influential
advisor to management in the development of a capital formation strategy that positioned the company for
growth. Broadmark Asset Management Company, which he helped form, received both direct investment and a
$100-million allocation from CALPERS in 2000.
Mr. Schocken is a member of the National Advisory Board of the Democratic National Committee and an avid
cyclist. He is an honors graduate of the University of Washington and holds an MBA from Harvard University. He
holds Series 7, 24, 63 and 79 FINRA registrations.
Email Joe at [email protected]
© 2010 Broadmark Capital, LLC. All Rights Reserved.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
THE TEAM
THE TEAM
Broadmark Capital, LLC is a merchant bank that
raises capital, advises and invests directly in client
companies to create shareholder value.
Broadmark Capital, LLC is a merchant bank that
raises capital, advises and invests directly in client
companies to create shareholder value.
ADAM J. FOUNTAIN, PRINCIPAL
TREVOR BROWND, ANALYST
Mr. Fountain's responsibilities at Broadmark include investor and client sourcing, and transaction management
across all of Broadmark's focus areas including life sciences, technology, new media, middle market, real estate,
telecommunications and financial services. His current interests include life science companies that have
demonstrated proof of concept, particularly drugs with clinical data and devices with at least animal data, and
some mitigation of risk, e.g. shortened regulatory paths, 505(b)2, etc. Areas of interest in technology include
SaaS, new media, and any revenue generating high growth companies. Responsibilities also include all activities related to Broadmark's merchant banking function: identifying and qualifying potential direct investments
and producing Broadmark white papers. In addition to these responsibilities, Mr. Fountain is a part owner of
Pyatt Broadmark Management, LLC and responsible for their investor relations and fund management. He also
has a significant support role for Broadmark relating to regulatory compliance.
Mr. Brownd is the most recent addition to Broadmark Capital. Prior to joining Broadmark he worked with a
privately held restaurant company performing operational analysis, cash flow forecasting, budgeting and new
investment analysis. Mr. Brownd also has a background in investment consulting and equity analysis. His
consulting work was focused on investment management research for institutional clients including public and
private pension plans, endowments and 401Ks.
Mr. Fountain has had a significant or lead role in the following engagements (in no particular order): Pyatt
Broadmark Management, Global Voyages Group, FedTax, AVM, MGT, SRS Medical, PhysioSonics, Generic
Medical Devices, HipCricket, Omeros, XShares, Sound Pharmaceuticals, Zynex Medical, MediQuest Therapeutics, CardioMetrix and Shoreline among others. Mr. Fountain originally joined Broadmark in 2003 as an Associate focused on client sourcing and transaction management in the life sciences sector.
Prior to joining Broadmark, Mr. Fountain was an Associate at L.E.K. Consulting in Los Angeles, CA from 2001
through 2003, an international strategic consulting firm headquartered in London. While at L.E.K., he worked
primarily in the life sciences practice. Key projects included developing a product marketing and distribution
strategy for an established European pharmaceutical company, formulating a product development and
partnering strategy for a start-up biotechnology company, and preparing for the likely adoption of a new
product in the medical device industry.
At Broadmark Mr. Brownd’s responsibilities include research and analysis pertaining to all of the firm’s activities. He is passionate about working with the companies and entrepreneurs that comprise Broadmark’s investment banking business. He most enjoys his role in the client sourcing and due diligence process. Mr. Brownd’s
areas of interest include electronic devices, new revenue models in software, cloud applications and medical
devices.
Mr. Brownd graduated from the University of Portland with an undergraduate degree in accounting and
finance. He also holds an MBA from Boston University focusing on valuation and international management.
Outside of Broadmark Mr. Brownd enjoys skiing throughout the Northwest, exploring the Puget Sound during
the summer and cooking year round.
Email Trevor at [email protected]
Mr. Fountain graduated with a B.A. in International Relations from Stanford University, Minor in German Studies
in 2001. He holds Series 7, Series 63, Series 66 and Series 79 FINRA registrations. Outside of Broadmark, Mr.
Fountain was a co-founder of WINGS: The Washington Medical Technology Angel Network, and formerly
served as a Director. In addition to his role at WINGS, he has served on the Executive Committee for the
WBBA’s annual life science conference for several years. He is active in his church and resides north of
Seattle with his wife, Emily, and their son, Samuel. He enjoys riding his bike, cooking, brewing, fantasy baseball,
and beekeeping.
Email Adam at [email protected]
© 2010 Broadmark Capital, LLC. All Rights Reserved.
© 2008 Broadmark Capital, LLC. All Rights Reserved.
PARTNERS
PARTNERS
Broadmark’s services have helped dozens of
companies achieve great things.
Broadmark’s services have helped dozens of
companies achieve great things
PARTNERS
MIDDLEMARCH PARTNERS
PYATT BROADMARK MANAGEMENT, LLC
www.middlemarchllc.com
www.pyattbroadmark.com
Middlemarch Partners is a merchant banking firm focused on providing
the strategic capital raising solutions and acquisition advisory services
of an investment bank with the direct co-investment capital of a private
equity investor. They focus on high-growth financial services, financial
services-enabling technologies, and business services companies;
sectors where its Principals have deep domain expertise as bankers, investors, and operators. The firm advises and invests
across the spectrum of mid-stage venture, growth capital, and growth buyouts transactions.
Pyatt Broadmark Management, LLC is the Manager of the Pyatt
Broadmark Real Estate Lending Fund I ("PBRELF I" or the "Fund").
PBRELF I is an unleveraged, no-load, evergreen fund that writes short-term, first position loans secured by real estate in
the Pacific Northwest. The goal of the Fund is to provide investors with a high-yield debt instrument while minimizing
the risk of principal loss and maintaining near-term liquidity.
DURHAM & BLACK
www.durhamblack.com
Durham & Black is a strategic advisory firm specializing in the
tech/telecoms market providing Executive Advisory, Capital Services,
and Business Development services to telecommunications and service
provider companies worldwide. With a specific focus and expertise in
the technology and telecommunications verticals, they approach each
client engagement with a specific purpose in mind: to develop tailored
solutions that enable their clients to achieve their objectives, overcome challenges and identify areas of possible
expansion or improvement in their businesses.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
CONTACT US
CONTACT US
If you recognize the value of partnering with an
established and tenacious merchant bank,
please contact us.
If you recognize the value of partnering with an
established and tenacious merchant bank,
please contact us.
SEATTLE OFFICE
6t
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2800 One Union Square
600 University St.
Seattle, WA 98101-4123
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tel: (206) 623-1200
fax: (206) 623-2213
email: [email protected]
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DIRECTIONS
Our office is located in One Union Square, on the corner of 6th and University Street in downtown Seattle.
FROM THE AIRPORT (SOUTH OF SEATTLE):
Turn left on S 156th and then right onto Air Cargo Rd. Turn left onto S 160th St. Turn left onto International Blvd/
WA-99. Take the WA-518 E ramp towards I-405/Renton/I-5 and merge onto WA-518 E. On the left, take the I-5 N
exit towards Seattle. From I-5, take the Seneca St. Exit number 165 - on the left. Turn right onto 6th Ave. Our offices
are located in 2800 One Union Square one block down on 6th Ave. For parking underneath the building, follow 6th
Avenue to two blocks to Pike Street, turn right on Pike, and turn right on 7th Avenue. 7th Avenue leads straight into
the parking garage for One/Two Union Square.
FROM THE EASTSIDE:
From Bellevue, take I-405 North towards Everett. From 405, take the WA-520 exit west towards Seattle/Redmond and
then the I-5 S exit on the left towards City Center. From I-5, take exit 165B, Union Street. Just off the freeway, take the
first left onto 7th Avenue which leads directly into the parking garage for One/Two Union Square. Our offices are in
Suite 2800 of One Union Square.
FROM THE NORTH OF SEATTLE:
From I-5, take exit 165B, Union Street. Just off the freeway, take the first left onto 7th Avenue which leads directly into
the parking garage for One/Two Union Square. Our offices are in Suite 2800 of One Union Square.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
© 2010 Broadmark Capital, LLC. All Rights Reserved.
TERMS & CONDITIONS
LEGAL DISCLAIMER
This website, including all of its subsidiary parts, its design, associated graphics, the names Broadmark Capital,
Broadmark Capital, LLC, broadmark.com, and all other files residing on or at the broadmark.com site are
copyrighted by and are the property of Broadmark Capital, LLC
Broadmark Capital, LLC (“Broadmark”) is registered as a broker-dealer with FINRA. Currently Broadmark Capital,
LLC is registered in the following jurisdictions:
All rights in and to this website and its constituent parts are hereby reserved and, except as provided herein, no
part of this website may be used for any reason or reproduced in any manner, whether by paper, electronic means
or any other method without the express written consent of Broadmark Capital. All Trademarks are the property of
their respective owners. All public entity logos are used with permission and may not be reproduced, copied, or
transmitted. All other images are copyright Broadmark Capital and may not be reproduced, copied, or transmitted
without prior consent.
Permission is hereby granted for the following purposes only: (i) to transport these pages through any network
media using the HTTP Hypertext Transport Protocol for temporary storage for the purposes of reading these pages;
(ii) to refer to these pages from other pages via Uniform Resource Locators (URLs); and (iii) to print individual
informational pages in hard copy format only for private use.
These pages may not be copied for any other reason, nor may they be permanently stored on any system other than
broadmark.com that is capable of retrieving them via HTTP. Copies of these pages may not be modified under any
circumstances, except for visual formatting in accordance with the HTML specification.
All materials on broadmark.com are provided “AS IS” without warranty of any kind, either express or implied,
including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose or noninfringement. In no event shall Broadmark Capital be liable for any incidental, indirect, special or consequential
damages whatsoever (including but not limited to lost profits) arising out of or related to any information contained
herein. Broadmark Capital reserves the right to make changes to any materials on broadmark.com, and to make
improvements and/or changes to this site at any time and without notice.
Alaska, Arizona, California, Colorado, Connecticut, District of Columbia, Florida, Idaho, Illinois, Maryland,
Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon,
Pennsylvania, Texas, Utah, Virginia, Washington, Wyoming
Solicitations are limited to residents of the above states only. Broadmark is not a registered investment advisor.
The information contained herein is not intended for use by any non-U.S. person, or in any jurisdiction where its
use would be unlawful, or by any other person for commercial purposes.
BROADMARK CAPITAL LLC BUSINESS CONTINUITY PLAN DISCLOSURE STATEMENT
Broadmark Capital, LLC has developed a Business Continuity Plan describing how we will respond to events that
significantly disrupt our business. With that in mind, we are providing you a summary of our plan.
We plan to quickly recover and resume business operations after a significant business disruption and respond
by safeguarding our employees and property, making a financial and operational assessment, protecting the
is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the
significant business disruption.
Significant business disruptions can vary in their scope, such as only our firm, the entire Seattle area, or western
Washington region. Depending on the type of disruption, we will transfer our operations to a site outside of the
affected area, and recover and resume business as soon as possible.
In either situation, we plan to continue in business and notify you through our main telephone number: (206)
623-1200. If the significant business disruption is so severe that it prevents us from remaining in business, we will
assist you in contacting parties you have conducted business with (issuers and investors).
For more information - If you have questions about our business continuity planning, you can contact us at
206-623-1200 or [email protected].
© 2010 Broadmark Capital, LLC. All Rights Reserved.
© 2010 Broadmark Capital, LLC. All Rights Reserved.