Rand Capital Reports $10 Million Cash Available for Investment ($1.48 per share) and $3.25 Net Asset Value
November 05 2010 - 8:00AM
- One portfolio exit – Innov-X Systems, Inc. generated $7
million return over life of investment
- Rand has $10 million cash on hand (represents 46% of
Net Asset Value)
- Net Asset Value is $3.25 per share for the quarter
ending September 30, 2010
- One follow-on investment totaling
$250,000
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 third quarter ended September 30,
2010 highlighting a net asset value of $3.25 per share, a decrease
of ($0.03) from June 30, 2010. At the end of the third quarter,
Rand's total investment portfolio was valued at $21.1 million,
which exceeds its cost basis of $16.5 million, reflecting $4.5
million in net unrealized appreciation.
Portfolio Activities
During the quarter:
- Rand made a $250,000 follow-on investment in Rheonix,
Inc. (Ithaca, NY)
(www.rheonix.com). Rheonix develops
microfluidic testing devices including channels, pumps, reaction
vessels, and diagnostic chambers, for testing of small volumes of
chemicals and biological fluids.
- Innov-X Systems, Inc. (Woburn, MA)
(www.innovx.com) was acquired on July 1, 2010 by Olympus NDT
Corporation, (Waltham, MA) (www.olympus-ims.com) and will be a
consolidated subsidiary of Tokyo, Japan based Olympus
Corporation. Innov-X built a global business
as a developer, manufacturer and supplier of portable X-ray
fluorescence (XRF) analyzers that are used to determine the types
and amounts of elements that make up objects.
Allen F. Grum, President of Rand Capital, stated, "It is
bittersweet when we sell a company like Innov-X. It was a
pleasure to help the management team increase their revenues by ten
times and employment eight times over the course of the
investment. We realized over $7 million from our initial
$600,000 loan. We look forward to more investments like
Innov-X. It is a robust period for merger and acquisitions
with corporate balance sheets flush with cash. Several of our
companies have had discussions with potential acquirers and the
results of these should be known in the next quarter. We are
also flush with cash and now have over $10 million of cash on our
balance sheet equivalent to $1.48 per share. Rand's cash
holdings now represent 46% of consolidated Net Asset Value. We
have begun analyzing the benefits of creating an affiliation with
the SBIC program through a new SBIC fund and continue to evaluate
interesting investment opportunities."
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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