Rand Capital Initiates Quarterly Dividend at $0.10 Per Share
February 26 2021 - 7:15AM
Business Wire
Rand Capital Corporation (Nasdaq: RAND) (“Rand”), a business
development company (“BDC”), today announced that its Board of
Directors declared its first regular quarterly cash dividend of
$0.10 per share. The cash dividend will be paid on or about March
29, 2021 to shareholders of record as of March 15, 2021. At
December 31, 2020, Rand had approximately 2.6 million shares
outstanding.
Pete Grum, President and CEO of Rand noted, “We are pleased to
initiate our regular dividend at an annualized rate of 40 cents per
share. We feel this is a conservative level based on our
expectations of the income from our current portfolio and our
expense projections for 2021. We have been an active investor in
income producing assets and are creating a robust pipeline of
potential new investments. We currently have approximately $23
million in liquidity for new investments including our undrawn SBA
commitment of $3 million. We expect this investment activity to
augment net investment income and as a result we believe we can
grow our dividend over time.”
He added, “Within our portfolio are several exciting equity
investments with whom we are working to produce liquidity events
and potential capital gains related to these investments.
Importantly, the Board will consider realized gains and losses from
investment activity when determining the total amount of dividend
to be paid annually.”
Rand’s 2020 dividend of $1.33 per share was comprised of
approximately $0.94 from capital gains and $0.39 from net
investment income.
When declaring distributions, Rand’s Board of Directors reviews
estimates of taxable income available for distribution, which may
differ from consolidated net income under generally accepted
accounting principles due to (i) changes in unrealized appreciation
and depreciation, (ii) temporary and permanent differences in
income and expense recognition, and (iii) the amount of spillover
income carried over from a given year for distribution in the
following year. The final determination of taxable income for each
tax year, as well as the tax attributes for distributions in such
tax year, will be made after the close of the tax year.
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 are
already generating 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. All statements, other than historical facts, including but
not limited to statements regarding the conservativeness of the
current dividend rate, the assumptions made for income and
expenses, the exits of portfolio companies, the net gain or losses
to be realized through portfolio exits, the effectiveness of Rand’s
new investment strategy; the pace at which Rand can deploy its
investment capital; the competitive ability and position of Rand;
and any assumptions underlying any of the foregoing, are
forward-looking statements. 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) evolving legal, regulatory
and tax regimes; (2) changes in general economic and/or industry
specific conditions; and (3) other risk factors as detailed from
time to time in Rand ’s reports filed with the Securities and
Exchange Commission (“SEC”), including Rand’s annual report on Form
10-K for the year ended December 31, 2019, quarterly reports on
Form 10-Q, and other documents filed with the SEC. Consequently,
such forward-looking statements should be regarded as Rand’s
current plans, estimates and beliefs. Except as required by
applicable law, Rand 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/20210226005064/en/
Company: Allen F. ("Pete") Grum President and CEO Phone:
716.853.0802 Email: pgrum@randcapital.com
Investors: Deborah K. Pawlowski Kei Advisors LLC Phone:
716.843.3908 Email: dpawlowski@keiadvisors.com
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