Gladstone Investment Corporation Exits its Investment in Star Seed
January 02 2019 - 8:15AM
Gladstone Investment Corporation (NASDAQ: GAIN) (“Gladstone
Investment”) announced today the sale of its equity interest and
the prepayment of its debt investment in Star Seed, Inc. (“Star
Seed”) to Sequel Holdings, L.P on December 21, 2018. As a result of
this transaction, Gladstone Investment realized a gain on its
equity investment. Gladstone Investment acquired Star Seed in
partnership with Broadgate Capital and ZJM Equity in
2013.
Star Seed, headquartered in Osborne, KS, is a leading seed
distributor focused on native grasses, wildflowers, forages, cover
crops, wheat, and other small grains. Through its ability to source
a broad array of grasses and flowers, Star Seed has built a leading
position in the conservation market in addition to its historical
focus on agricultural products.
“Gladstone Investment has enjoyed a strong partnership with Star
Seed’s management team over the last several years,” said Peter
Roushdy, Managing Director of Gladstone Investment. “Star
Seed’s deep sourcing relationships, premium seed quality, and quick
turnaround have proven to be a winning formula. Eric Woofter, CEO,
Bob Hamel, COO, and the entire management team have achieved
outstanding results in both growing and transforming the business
and we wish them continued success.”
“With the sale of Star Seed and from inception in 2005,
Gladstone Investment has exited 16 of its management supported
buy-outs, generating significant net realized gains on these
investments,” said David Dullum, President of Gladstone Investment.
“Our strategy and capability as a buyout fund and our investment
approach of realizing gains on equity, while generating strong
current income during the investment period provides meaningful
value to shareholders.”
Gladstone Investment Corporation is a publicly traded business
development company that seeks to make secured debt and equity
investments in lower middle market private businesses in the United
States in connection with acquisitions, changes in control and
recapitalizations. Additional information can be found at
www.gladstoneinvestment.com.
For Investor Relations inquiries related to any
of the monthly distribution-paying Gladstone family of funds,
please visit www.gladstone.com.
Forward-looking Statements:
The statements in this press release regarding
the longer-term prospects of Gladstone Investment and Star Seed and
its management team, and the ability of Gladstone Investment and
Star Seed to be successful in the future are "forward-looking
statements." These forward-looking statements inherently involve
certain risks and uncertainties in predicting future results and
conditions. Although these statements are based on Gladstone
Investment's current beliefs that are believed to be reasonable as
of the date of this press release, a number of factors could cause
actual results and conditions to differ materially from these
forward-looking statements, including those factors described from
time to time in Gladstone Investment's filings with the Securities
and Exchange Commission. Gladstone Investment undertakes no
obligation to update or revise these forward looking statements
whether as a result of new information, future events or otherwise,
except as required by law.
SOURCE: Gladstone Investment Corporation
For further information: Gladstone Investment Corporation,
703-287-5810
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