Alliance's Financing Deal Was a Family Affair
When Alliance Pharmaceuticals (ALLP Quote) sought an investment bank last year to arrange its controversial $15 million financing plan, the struggling San Diego-based biotech firm decided to keep it all in the family.
Alliance hired Roth Capital Partners, a Southern California-based investment bank that specializes in raising money for small- and micro-cap companies. But Roth Capital is run by two brothers -- CEO Byron Roth and COO/CFO Gordon Roth -- who just happen to be the brothers of Alliance's top management -- CEO Duane Roth and President Theodore Roth.
As reported by TheStreet.com, Alliance's CEO Roth and a director on the company's board were investors in the private placement that sold 30% of the company for just $15 million. The participation of Alliance insiders wasn't disclosed to existing shareholders until after the deal was completed. ...
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