Rand Capital Provides Key Dates Related to $1.62 per Share Special Dividend
April 01 2020 - 2:39PM
Business Wire
Rand Capital Corporation (Nasdaq: RAND) (“Rand” or “Rand
Capital” or the “Company”), a business development company, today
announced the key dates related to the previously announced special
dividend of $23.7 million, or approximately $1.62 per share,
declared on March 3, 2020, in connection with its plans to elect to
become a regulated investment company (“RIC”) for U.S. federal tax
purposes beginning with tax year 2020.
Record Date:
April 2, 2020
Election Period:
April 3, 2020 to 5:00 p.m. Eastern Time on
April 24, 2020
Payment Date:
May 11, 2020
Ex-Dividend Date:
May 12, 2020
The details and U.S. federal tax consequences of the special
dividend will be described in the election form and accompanying
materials that will be mailed to shareholders in connection with
the special dividend promptly following the Record Date.
Shareholders who do not return a timely and properly completed
election form before the Election Deadline will be deemed to have
made an election to receive the special dividend as determined by
the pro rata calculations based on other shareholders’ elections
and the limitation of 20% cash.
Shareholders who hold their shares through a bank, broker or
nominee, or in “street name” will not receive an election form
directly from Rand and should receive information regarding the
election process from their bank, broker or nominee. Street name
holders should contact their bank, broker or nominee for additional
information.
The total number of shares of common stock to be distributed to
shareholders receiving all or a portion of the special dividend in
shares of Rand’s common stock on the Payment Date will be
determined based upon the volume-weighted average price of the
common stock during the three consecutive trading days immediately
following the Election Deadline.
ABOUT RAND CAPITAL
Rand Capital (Nasdaq: RAND) is an externally-managed Business
Development Company (BDC) with a wholly-owned subsidiary licensed
by the U.S. Small Business Administration (SBA) as a Small Business
Investment Company (SBIC). The Company’s investment objective is to
maximize total return to its shareholders with current income and
capital appreciation by focusing its debt and related equity
investments in privately-held, lower middle market companies with
committed and experienced managements in a broad variety of
industries. Rand invests in early to later stage businesses that
have sustainable, differentiated and market-proven products,
revenue of more than $2 million and a path to free cash flow or up
to $5 million in EBITDA. The Company’s investment activities are
managed by its external investment adviser, Rand Capital Management
LLC. Additional information can be found at the Company’s website
where it regularly posts information:
https://www.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. Forward-looking statements concern 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,” “endeavor,” “seek,” “anticipate,”
“estimate,” “overestimate,” “underestimate,” “believe,” “could,”
“project,” “predict,” “continue,” “target” or other similar words
or expressions. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove to be
incorrect, actual results may vary materially from those indicated
or anticipated by such forward-looking statements. The inclusion of
such statements should not be regarded as a representation that
such plans, estimates or expectations will be achieved. Important
factors that could cause actual results to differ materially from
such plans, estimates or expectations include, among others, (1)
the risk that Rand Capital may be unable to fulfill the conditions
required in order to elect to be treated as a RIC for U.S. federal
tax purposes or, once the election has been made, to maintain its
status as a RIC for U.S. federal tax purposes; (2) the risk that
Rand Capital is unable to declare and pay future quarterly cash
dividends to shareholders; (3) evolving legal, regulatory and tax
regimes; (4) changes in general economic and/or industry specific
conditions; and (5) other risk factors as detailed from time to
time in Rand Capital’s reports filed with the Securities and
Exchange Commission (“SEC”), including Rand Capital’s annual report
on Form 10-K for the year ended December 31, 2019, later filed
quarterly reports on Form 10-Q, the definitive proxy statement and
other documents filed with the SEC. Consequently, such
forward-looking statements should be regarded as Rand Capital’s
current plans, estimates and beliefs. Except as required by
applicable law, Rand Capital assumes no obligation to update the
forward-looking information contained in this release.
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version on businesswire.com: https://www.businesswire.com/news/home/20200401005693/en/
Company: Allen F. ("Pete")
Grum President and CEO Phone: 716.853.0802 Email:
pgrum@randcapital.com
Investors: Deborah K.
Pawlowski / Karen L. Howard Kei Advisors LLC Phone: 716.843.3908 /
716.843.3942 Email: dpawlowski@keiadvisors.com /
khoward@keiadvisors.com
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