Rand Capital Announces $4.5 Million in Funding for New Portfolio Companies in First Quarter 2021
March 31 2021 - 8:47AM
Business Wire
Rand Capital Corporation (Nasdaq: RAND) (“Rand”), a business
development company, today announced that it recently funded two
new portfolio companies with a total investment of approximately
$4.5 million, primarily through debt instruments with equity
components.
Rand funded a term loan with warrants for Seybert’s Billiard
Supply as part of a larger investment led by Moa Capital, a growth
private equity firm. In partnership with the Seybert’s founder, Sid
Kreis, Moa acquired an equity interest in the company while also
providing growth capital. Seybert’s, which was founded in 1998,
carries a variety of premium billiard equipment for serious
billiard players and is the largest distributor of Predator
Billiard cues in the U.S. Seybert’s has developed one of the
leading e-commerce platforms for the billiard category and is known
for its quality product and service. With the capital infusion,
Seybert’s is planning to expand its social media presence and grow
its e-commerce marketing and customer service platforms. Its
marketing strategy will leverage the company’s long-standing
reputation and expertise in the sport. More information can be
found at https://www.seyberts.com/.
Rand partnered with Callodine Strategic Credit (“CSC”), an
affiliate of Rand’s external adviser, Rand Capital Management
(“RCM”), and Baymark Capital to provide acquisition and growth
capital in connection with the formation of a full-service fire
protection platform created by the merger of Swanson Fire
Protection and Residential & Commercial Fire Protection. Rand’s
participation in the transaction consisted of debt funding in the
form of a subordinated debenture and the acquisition of preferred
equity. The merged companies offer a suite of end-to-end fire
protection products and services for commercial and residential
facilities in a fast-growing industry. With offices in
Jacksonville, Florida and Waldorf, Maryland, the combined company
has operations spanning across multiple states. Combined under the
name BMP Swanson Holdco, LLC, the company has grown revenue on a
historical combined company basis since 2017, has established a
solid reputation in the industry and the merged companies have been
in business for a combined 48 years.
Allen F. (“Pete”) Grum, President and Chief Executive Officer,
noted, “These investments demonstrate our continued effort to
deploy capital with proven management teams and experienced
investment partners. We are focused on increasing net investment
income through providing growth and expansion capital to growing
and successful companies.”
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 up
to $5 million in EBITDA. The Company’s investment activities are
managed by its external investment adviser, Rand Capital
Management, LLC (“RCM”). Additional information can be found at the
Company’s website where it regularly posts information:
https://www.randcapital.com/.
ABOUT CALLODINE STRATEGIC CREDIT
Callodine Strategic Credit (“CSC”) provides mezzanine debt and
structured capital solutions to lower middle-market companies
predominately located in the Southeast, Midwest, and Mid-Atlantic.
CSC’s funds are used for growth, acquisitions, recapitalizations,
and refinancings in a broad array of industry sectors. The CSC
partners have a significant track record working with lower
middle-market companies. CSC is an affiliate of Rand’s external
investment adviser, Rand Capital Management, LLC (“RCM”). Both CSC
and RCM are subsidiaries of Callodine Group, LLC. For more
information, visit www.callodine.com.
ABOUT MOA CAPITAL
Moa Capital is a growth private equity firm focused on companies
in the lower middle market. The firm was founded by experienced
middle-market private equity investors who recognize the
significant opportunity with businesses that are too small for
larger private equity firms and do not offer the high growth rates
required by venture capital investors. These businesses typically
generate less than $8 million of EBITDA, are in niche markets and
have a track record of steady financial performance. Moa Capital
has a network of operating executives that assist with developing
the business strategy and implementing growth initiatives. Moa
Capital offers flexible capital solutions that are not restricted
by time horizon or limited to control investments. Moa Capital is
unaffiliated with CSC and RCM.
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 effectiveness of Rand’s
investment strategy; the ability to deploy its investment capital;
the success of new portfolio companies; the opportunities created
with new investment partners; 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, 2020, 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/20210331005256/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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