When looking at the last year of activity for Enthrust Financial Services Inc. (OTCBB: EFSV), you’ll notice that over the last year shares peaked at just under $4 before dropping off around the beginning of the 2007. Wednesday those shares fought back, peaking at $6 a share before closing at $5.50.The 782 percent increase from the opening bell price of $1.01 per share came on the heels of an announcement by EFSV that it completed a reverse merger with Rodman & Renshaw Holding LLC. You can also expect to see a name change associated with this merger as Enthrust intends to change its name to Rodman & Renshaw Capital Group Inc.
According to a company statement, shares of EFSV have been issued to the members of Rodman & Renshaw as well as its investor. After the exchange process, EFSV will have 25 million shares of common stock outstanding. A value of $7 per share was used in connection with the transaction.
For Enthrust this has been the goal since the company was founded in 1996 under the name Centennial Banc Share Corporation. The company stated it wouldn’t have significant operations, but instead intends to acquire or merge with another operating company.
The company formed Entrust Mortgate Inc. and engaged in the origination and wholesale purchase of non-conforming residential mortgage loans in the United States.
This merger will also allow Rodman & Renshaw a chance to go public. This, according to John J. Borer III, CEO of Rodman & Renshaw, is a major milestone for the company, and a chance for enormous growth.
“This ‘going-public’ transaction, coupled with the $20 million private placement financing which we completed in March 2007 with a group of strategic investors, will enable us to continue to grow our business platform by adding new products to serve our existing clients,” Borer said.
The CEO also said that the company would now be able to hire professionals to supplement its existing staff and build new teams to focus on sectors of the economy other than life science.
Through AcumenBioFin, Rodman & Renshaw serves as an investment banking firm to the biotechnology sector. The company currently provides investment banking services to companies that have significant capital needs due to the developmental stage they may be going through.
