Rand Capital Announces Sale of its Equity Interest in Microcision LLC
January 22 2020 - 9:15AM
Business Wire
- Rand sold its interest for $1.5 million, realizing a $1.5
million pre-tax gain on its equity investment initiated in
2009
- Rand’s sale was part of a broader change in Microcision’s
ownership allowing management to have control of the
company
- Microcision also repaid Rand principal of approximately
$453,000 and updated the terms and maturity of its $1.5 million
subordinated note due to Rand
Rand Capital Corporation (Nasdaq: RAND) (“Rand” or “Rand
Capital”), a business development company, announced the sale of
its equity interest in one of its portfolio companies, Microcision
LLC. The sale, which closed on December 31, 2019, resulted in
Rand’s proceeds of $1.5 million, realizing a pre-tax gain of $1.5
million on its cost basis. Additionally, Microcision repaid
approximately $453,000 of principal to Rand, reducing the balance
of its subordinated note to $1.5 million. In January, Rand restated
the subordinated note to an 11% interest rate and a five year
maturity, and received a warrant for 5% of Microcision’s
equity.
“We successfully transitioned the ownership of Microcision at
favorable terms to all parties involved, resulting in a win-win-win
transaction,” noted Bob Kramer, Microcision’s President and
majority owner. “Most importantly, we were able to retain our
independence, which we believe enhances our differentiation,
driving our leading position in the marketplace. We undertake
significant research and development in partnership with our
innovative customers. This process results in providing the most
technologically advanced medical devices that improve the quality
of life for millions of people around the globe. We are thankful to
Rand for their long-standing support of our growth, development and
market positioning.”
Allen F. (“Pete”) Grum, President and Chief Executive Officer of
Rand Capital, commented, “We were happy to work with Microcision
management to restructure the equity of the company, positioning
them for the future. In addition to monetizing our equity interest,
we were able to continue our investment in the company by providing
subordinated debt and a warrant to participate in their future
growth.”
ABOUT MICROCISION
Microcision is a leading manufacturer of life-changing,
life-saving medical device implants and instrumentation. The
company’s continuous investment targets the most sophisticated
systems and machining technologies, producing the most complicated
medical device implants and assemblies as efficiently as possible.
Applications include small bone orthopedics, spine fusion, dental
implant, neurological, maxillofacial, hand, wrist, foot and ankle,
drug delivery systems and numerous other medical uses. Learn more
at: https://www.microcision.com/.
ABOUT RAND CAPITAL
Rand Capital (Nasdaq: RAND) is a 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). 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. 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 Capital’s reports
filed with the Securities and Exchange Commission (“SEC”),
including Rand Capital’s annual report on Form 10-K for the year
ended December 31, 2018, later filed quarterly reports on Form
10-Q, the definitive proxy statement and other documents filed with
the SEC. Consequently, such forward-looking statements should be
regarded as Rand Capital’s current plans, estimates and beliefs.
Except as required by applicable law, Rand Capital 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/20200122005467/en/
Company: Allen F. ("Pete") Grum President and CEO Phone:
716.853.0802 Email: pgrum@randcapital.com Investors: Deborah
K. Pawlowski / Karen L. Howard Kei Advisors LLC Phone: 716.843.3908
/ 716.843.3942 Email: dpawlowski@keiadvisors.com /
khoward@keiadvisors.com
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