Rand Capital’s (NASDAQ:RAND) First Quarter 2019 Financial Results Support User-Friendly Phone Book LLC's Concerns Regarding...
May 03 2019 - 10:07AM
Business Wire
User-Friendly Continues to Urge a Vote AGAINST
East Asset Management Transaction
User-Friendly Phone Book, LLC (“User-Friendly”) announced today
that it believes the first quarter financial results of Rand
Capital Corporation (“Rand”) (NASDAQ:RAND) further supports
liquidating the portfolio assets will provide more value to
shareholders than the East Asset Management transaction. In its
earnings release of May 2, 2019, Rand reported an increase in net
asset value (“NAV”) to $5.06 per share, highlighting the steeply
discounted $3.00 per share purchase price being offered to East in
the transaction.
Further, Rand management continued to state its view that
liquidating the portfolio would yield less than $3.00 per share.
However, this view is empirically belied by the realization of
Rand’s investment in eHealth Global Technologies, Inc., which
provided $3.725 million, or approximately 6% more than eHealth’s
$3.5 million carrying value reported as of December 31, 2018.
User-Friendly believes the realization of this investment is
empirical evidence that supports, contrary to management’s
misleading claims, liquidating the portfolio would yield in excess
of $3.00 per share being paid by East in the transaction.
Management’s statements appear to be driven more by a desire to
retain their excessive compensation arrangements than serving the
shareholders' interests. User-Friendly continues to believe that
management and the Rand Board of Directors have agreed to sell
control of Rand for materially inadequate consideration relative to
the fair value of Rand’s assets.
CERTAIN INFORMATION CONCERNING THE PARTICIPANT
User-Friendly Phone Book, LLC (“User-Friendly”) is the sole
participant in this solicitation. User-Friendly has filed a
preliminary proxy statement with the Securities and Exchange
Commission (“SEC”) consisting of a proxy statement and accompanying
WHITE proxy card to be used to solicit proxies to vote against the
proposed transaction with East Asset Management, LLC at the Special
Meeting of Stockholders of Rand Capital Corporation (the “Company”)
scheduled to be held on May 16, 2019.
USER-FRIENDLY STRONGLY ADVISES ALL STOCKHOLDERS OF THE
COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS
THEY BECOME AVAILABLE BECAUSE THEY CONTAIN IMPORTANT INFORMATION.
SUCH PROXY MATERIALS ARE AVAILABLE AT NO CHARGE ON THE SEC’S WEB
SITE AT HTTP://WWW.SEC.GOV. IN ADDITION,
USER-FRIENDLY WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT
CHARGE UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO
USER-FRIENDLY’S PROXY SOLICITOR, MACKENZIE PARTNERS, INC.,
TOLL-FREE AT (800) 322-2885 or (212) 929-5500.
As of the date hereof, User-Friendly owns 1,455,993 shares of
common stock of the Company, representing approximately 23.0% of
the issued and outstanding shares of the Company.
About User-Friendly Phone Book
Operating since 1999, User Friendly Media boasts a portfolio of
print, digital and mobile marketing solutions for small business.
The company’s product suite includes 35 print directories, User
Friendly Apps, a mobile app builder, User Friendly Mobile ads, a
platform for serving locally-targeted mobile ad impressions and
GoLocal247.com, one of the fastest growing local business directory
websites in the country.
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version on businesswire.com: https://www.businesswire.com/news/home/20190503005299/en/
Matthew BretziusFischTank Marketing and
PRmatt@fischtankpr.com
Rand Capital (NASDAQ:RAND)
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