BUFFALO, NY, August 28, 2024–(BUSINESS WIRE)–Rand Capital Corporation (Nasdaq: RAND) (“Rand” or the “Company”), a business development company providing alternative financing to lower middle market companies, today announced the successful completion of the previously announced acquisition of its portfolio company SciAps, Inc. by Spectris plc (LSE: SXS). The transaction closed on August 21, 2024 and provided Rand with total proceeds of $13.1 million at closing, in excess of the valuation of Rand’s equity and debt investments in SciAps as of June 30, 2024 of $10.8 million.
The sale proceeds payable to Rand at closing consisted of $2.1 million in debt repayments, $165,000 in interest income and loan-related fees and $10.8 million in return on equity. These amounts also include $244,000 held in transaction-related escrow accounts.
“The sale of SciAps provided us with a significant return on our original investment in 2013,” stated Daniel P. Penberthy, President and CEO of Rand Capital. “With a cost basis equity investment of $3.1 million, this result underscores the impressive success of the sale. The repayment of debt by SciAps in the acquisition transaction will reduce our interest income in the near term, but the proceeds from the return of capital will further support our strategic shift to a more debt-focused investment portfolio. These proceeds have improved our liquidity and strengthened our position to identify and exploit new credit opportunities, which we expect will further increase our interest income and shareholder dividends over the long term.”
ABOUT RAND CAPITAL
Rand Capital (Nasdaq: RAND) is an externally managed business development company (BDC). The Company’s investment objective is to maximize total return to its shareholders through current income and capital appreciation by concentrating its debt and related capital investments in private, lower middle market companies with committed and experienced management across a broad range of industries. Rand invests in companies with sustainable, differentiated and market-proven products, revenues in excess of $10 million and EBITDA in excess of $1.5 million. The Company’s investment activities are managed by its external investment advisor, Rand Capital Management, LLC. For more information, please visit the Company’s website where it regularly posts information: randcapital.com.
Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact, including, without limitation, statements regarding the effect of the repayment of debt by SciAps as part of the Transaction on the Company’s interest income in future periods, the Company’s strategy and prospects, statements regarding the maintenance or increase of the Company’s interest income and the Company’s dividend, and all assumptions underlying any of the foregoing statements, are forward-looking statements. Forward-looking statements address future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “seek” or other similar words or expressions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from those expressed or anticipated in forward-looking statements. The inclusion of such statements should not be relied upon as a representation that these plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from these plans, estimates or expectations include, among others, (1) evolving legal, regulatory and tax systems; (2) changes in general economic and/or industry conditions; and (3) other risk factors detailed from time to time in Rand’s reports filed with the Securities and Exchange Commission (“SEC”), including Rand’s Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q and other documents filed with the SEC. Accordingly, such forward-looking statements should be considered Rand’s current plans, estimates and beliefs. Except as required by law, Rand undertakes no obligation to update any forward-looking information contained in this release.
View original version on businesswire.com: https://www.businesswire.com/news/home/20240828358704/en/
Contacts
Company:
Daniel P. Penberthy
President and CEO
716.853.0802
[email protected]
Investors:
Deborah K. Pawlowski / Craig P. Mychajluk
Kei Advisors LLC
716-843-3908 / 716-843-3832
[email protected] / [email protected]
