Rand Capital Continues Portfolio Transition with Successful Exit of Position in Centivo
September 23 2021 - 8:30AM
Business Wire
To recognize approximate $1.6 million gain in
third quarter 2021
Rand Capital Corporation (Nasdaq: RAND) (“Rand”), a business
development company (“BDC”), announced today that it sold all of
its equity holdings in Centivo Corporation for gross proceeds of
approximately $2.4 million. Centivo was held at a fair value of
$1.4 million and represented 2.4% of Rand’s net assets, each at
June 30, 2021.
With the exit, Rand expects to record a gain of approximately
$1.6 million in the third quarter of 2021.
Mr. Allen F. “Pete” Grum, President and CEO of Rand Capital,
noted, “Consistent with our plan, we continue to exit our equity
investments and use the proceeds to invest in interest earning
assets to increase net investment income. We were part of the
original investors in Ashok Subramanian and his company Centivo and
had previously backed the management team with our investments in
Liazon. After investing in three rounds of equity, we took the
opportunity to exit the company and wish the Centivo team continued
success as they deliver on their vision of a Health Plan people can
actually afford to use.”
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 effectiveness of Rand’s
investment strategy and Rand’s ability to execute on such strategy;
Rand’s ability to deploy its investment capital; the success of
Rand’s current and former portfolio companies; 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/20210923005271/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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