Gladstone Investment Announces Final Results of Rights Offering
April 25 2008 - 5:26PM
Business Wire
Gladstone Investment Corp. (NASDAQ:GAIN) (the �Company�) announced
today that it has completed its previously announced offering of
transferable rights to purchase up to 5,520,033 shares of its
common stock. The Company issued all 5,520,033 shares available for
issuance as a result of the offering at a subscription price of
$7.48. The subscription price was set at 93% of the volume-weighted
average of the sales prices of the Company�s common stock on the
NASDAQ Global Select Market for the five consecutive trading days
ending on the expiration date of the offering, which was April 21,
2008. Subscriptions received exceeded shares available for issuance
in the offering by 1,572,985, or 28.5%. Due to the level of
oversubscription in the offering, no shares will be allocated to
oversubscriptions by persons who were not stockholders on the
record date of March 31, 2008. Proceeds to the Company after
payment of offering-related expenses, and before payment of
soliciting dealer fees, are expected to be approximately $41
million. The Company intends to use all of the net proceeds of the
offering to pay amounts outstanding under its line of credit.
Paying down the line of credit will increase the Company�s funds
available for investment, thereby allowing the Company to more
fully take advantage of available investment opportunities to
purchase small businesses in partnership with their management
teams. The Company expects that the investment of the proceeds of
the rights offering in these businesses will help to reduce the
relative significance of certain large positions in its portfolio.
Gladstone Investment Corporation is an investment company that
seeks to make debt and equity investments in small and mid-sized
private businesses in the U.S. in connection with acquisitions,
changes in control and recapitalizations. For more information
please visit our website at www.GladstoneInvestment.com. For
further information contact Investor Relations at 703-287-5835.
This press release may include statements that may constitute
�forward-looking statements,� including statements with regard to
the future performance of the Company. Words such as �believes,�
�expects,� �anticipates,� �estimated,� �approximately,� �projects�
and �future� or similar expressions are intended to identify
forward-looking statements. These forward-looking statements
inherently involve certain risks and uncertainties, although they
are based on the Company�s current plans that are believed to be
reasonable as of the date of this press release. Factors that may
cause the Company�s actual results, levels of activity, performance
or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by such forward-looking statements include, among others,
those factors listed under the caption "Risk factors" of the
Company�s Prospectus dated January 14, 2008, as filed with the
Securities and Exchange Commission on March 24, 2008. These
forward-looking statements also include unknown risks and
uncertainties, including the availability of attractive investment
opportunities, management�s ability to identify investment
opportunities that will balance the significance of other
investments in the Company�s portfolio, and the effect of the
Offering on future distributions by the Company. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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