Rand Capital Announces Second Quarter Results
July 22 2010 - 2:49PM
- Net Asset Value is $3.28 per share for the quarter
ending June 30, 2010
- One new investment and one follow-on investment
totaling $1,300,000
- Following end of the quarter, one portfolio exit –
Innov-X Systems, Inc. generated $5.6 million
Rand Capital Corporation (Nasdaq:RAND) ("Rand"), a business
development company (BDC) that provides capital and managerial
expertise for small to medium-sized private companies, announced
its financial results for the second quarter ended June 30, 2010
highlighting a net asset value of $3.28 per share, a decrease of
($0.02) from March 31, 2010. At the end of the second quarter,
Rand's total investment portfolio was valued at $26.4 million,
which exceeds its cost basis of $17.6 million, reflecting $8.8
million in net unrealized appreciation.
Allen F. Grum, President of Rand Capital, stated: "We had a busy
and productive quarter. Mid America Brick was
a transaction that we initiated three years ago and too which we
led the equity raise. They expect to begin manufacturing
bricks next year and will have an initial capacity of 60 million
bricks annually. Following the end of the quarter, we were
also pleased with our exit from Innov-X Systems,
Inc. This was the largest exit in Rand Capital SBIC's
history and had an IRR in excess of 80%."
Portfolio Activities
During the quarter:
- Rand made an $800,000 investment in Mid America
Brick (Mexico, MO) (www.midamericabrick). Mid
America Brick manufactures face brick for residential and
commercial construction. They will be the largest producer of
bricks in the region.
- Also during the quarter, Rand made a $500,000 follow-on
investment in Microcision LLC (Philadelphia, PA)
(www.microcision.com). Microcision is a
manufacturer of custom medical implants which includes dental
implants sold through its wholly owned subsidiary Aeton Medical
(www.aetonmed.com) including precision machined components,
implants and assemblies. Aeton has developed a proprietary
line of dental ST abutments, flathead drills, healing caps and
other unique products for the dental implant market.
Subsequent to the quarter, Innov-X Systems,
Inc. (Woburn, MA) (www.innovsys.com) was acquired by
Olympus, a Japanese company. Rand originally invested in
Innov-X in 2004 and invested a total of $1.9
million in a series of five investment tranches which will provide
Rand an estimated 4.75 times return on its original investment.
Safe Harbor
Statement
Information contained in this release, other than historical
information, should be considered forward-looking, and may be
subject to inherent uncertainties in predicting future results and
conditions. These statements reflect the Corporation's current
beliefs and are subject to a number of risk-factors, including:
general economic conditions which affect Rand and our portfolio
companies' operations; valuation and illiquid nature of the
portfolio investments; high degree of risk from investing in
private companies; the regulated environment in which we operate;
the amount of debt resulting from borrowing funds from the SBA;
dependency upon key management for investment decisions; and the
competitive market for investment opportunities and fluctuations in
quarterly results. Please see the Corporation's Form 10-Q,
Item 1A, previously filed with the Securities and Exchange
Commission for a detailed discussion of the risks and uncertainties
associated with the Corporation's business. Except as otherwise
required by Federal securities laws, Rand Capital Corporation and
Rand Capital SBIC, Inc. undertakes no obligation to update or
revise forward-looking statements for new events and
uncertainties.
ABOUT RAND CAPITAL
Rand Capital is a publicly held Business Development Company
(BDC), and its wholly owned subsidiary is licensed by the Small
Business Administration (SBA) as a Small Business Investment
Company (SBIC). Rand and its subsidiary provide capital and
managerial expertise to small and medium sized private companies
primarily located in the Northeast U.S. Rand is traded on the
NASDAQ under the symbol "RAND". Rand is headquartered in
Buffalo, NY. www.randcapital.com
CONTACT: Rand Capital Corporation
Investor Contact:
Allen F. Grum, President
716.853.0802
pgrum@randcapital.com
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