Rand Capital to Record Proceeds of $10.1 Million
December 23 2014 - 9:00AM
- Provides a greater than 5.5 times return on invested
capital
- Contributes to Rand's SBIC achieving a 12-year return
of over 20%
Rand Capital Corporation (Nasdaq:RAND) ("Rand"), a business
development company that makes venture capital investments in
companies with emerging product, service or technology concepts,
announced that it received $10.1 million in total proceeds from the
recent sale of a portfolio company. The portfolio company
represented approximately 9% of Rand's portfolio at the end of the
third quarter. Rand had a 4% equity ownership in the company, in
which it initially invested in 2011. Rand's internal rate of return
(IRR) for this asset was over 75%, representing a 5.5 times return
on invested capital.
Allen ("Pete") F. Grum, President and Chief Executive Officer of
Rand Capital, stated, "This recent sale demonstrates the success we
have had with our investments, particularly over the last 12 years.
Our success has been the result of Rand SBIC, which we established
in 2002. It has enabled us to participate in the Small Business
Administration's (SBA) Small Business Investment Company (SBIC)
program as a funding source. Over that time, the SBIC portfolio has
achieved an approximate return of over 20%. Our focus remains on
finding companies with strong management teams that need capital
for early market entry or expansion in order to commercialize a new
or unique product or service."
Rand's $30 million portfolio includes 27 active companies. In
addition, Rand has approximately $13 million in cash, or
approximately $2 per share, for future investments.
ABOUT RAND CAPITAL
Rand Capital is a publicly held Business Development Company
(BDC), and its wholly-owned subsidiary is licensed by the U.S.
Small Business Administration (SBA) as a Small Business Investment
Company (SBIC). Rand focuses its investments in early or expansion
stage companies with strong leadership that are bringing to market
new or unique products, technologies or services that have a high
potential for growth. Additional information can be found at the
Company's website where it regularly posts information:
www.randcapital.com.
Safe Harbor Statement
This news release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements
concerning future revenue and earnings, involve known and unknown
risks, uncertainties and other factors that could cause the actual
results of the Corporation to differ materially from the results
expressed or implied by such statements, including general economic
and business conditions, conditions affecting the valuation of the
Corporation's portfolio, the timing and opportunity for investments
or divestitures as well as conditions affecting the portfolio
companies' markets, competitor responses, and market acceptance of
their products and services and other factors disclosed in the
Corporation's periodic reports filed with the Securities and
Exchange Commission. Consequently, such forward looking statements
should be regarded as the Corporation's current plans, estimates
and beliefs. The Corporation assumes no obligation to update the
forward-looking information contained in this release.
CONTACT: Allen ("Pete") F. Grum
President & CEO
716.853.0802
pgrum@randcapital.com
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