A Conversation with Richard Kreger of Moody Capital

Episode Summary

In this episode of Capital Conversations, Karen Rands and Erik Nelson are joined by Richard Krieger, CEO of Moody Capital Solutions, for a deep, tactical conversation on capital raising strategies that most companies overlook.

Richard breaks down how rights offerings work, why they’re often misunderstood, and how they can be used to raise capital while strengthening—not harming—existing shareholder relationships. The discussion challenges common assumptions about dilution, discounts, and traditional financing methods like overnight deals and ATMs.

They also explore how market structure, investor behavior, and technology have evolved—and why companies that fail to plan ahead for capital needs often limit their own options.

In the Episode You'll Learn:

• Why rights offerings are one of the most underutilized capital raising strategies
• The biggest mistakes companies make when raising capital
• Why discounts don’t always mean more dilution
• How rights offerings align with long-term shareholder value
• The hidden risks of ATM (at-the-market) offerings
• Why short sellers avoid companies doing rights offerings
• The role of transfer agents in executing capital strategies
• How digital securities and blockchain are evolving the market
• Why timing your capital raise is critical to success

Timestamps:

00:24 — Welcome + introduction to Richard Krieger
01:50 — Podcast disclaimer
02:40 — Market recap: Dow Jones decline and support levels
05:04 — Chart analysis: why markets “fill gaps”
05:47 — Richard Krieger background and Moody Capital acquisition
08:06 — Lessons from the 2008 financial crisis
09:51 — Introduction to rights offerings
10:57 — Treating shareholders like customers
14:51 — How rights offerings reach all shareholders
18:28 — Why most companies don’t use rights offerings
20:30 — What companies get wrong about capital raises
21:48 — Key insight: discount vs dilution
23:21 — Case studies: Amco Pittsburgh, Cytosorbents, FlexShopper
24:44 — Who actually participates in rights offerings
25:23 — Risks and timing considerations
26:02 — Role of investment banks vs management
27:00 — Shift from roadshows to digital capital raising
28:22 — Investor behavior and transparency
29:02 — Problems with ATM offerings
31:14 — Why ATMs create uncertainty
33:19 — Short selling risks during rights offerings
35:39 — Short squeeze dynamics explained
36:21 — Overstock digital securities case study
39:37 — Blockchain securities and settlement challenges
42:47 — Evolution of digital trading infrastructure
45:32 — Rights offerings for OTC companies
46:25 — Reg A+ and raising up to $75M
48:47 — DTC and distribution advantages
50:08 — Why adoption of rights offerings may increase
50:26 — What’s next for Moody Capital
51:52 — Public vs private capital challenges
52:36 — Growth of corporate venture arms
53:07 — How to contact Moody Capital
54:04 — Final takeaway: shareholders are customers
55:16 — Choosing the right transfer agent
56:15 — Cross-border strategies and listings
57:24 — Mountain Share Transfer contact info
58:23 — Upcoming conferences
58:35 — Closing remarks