Rand Capital Announces Preliminary Results of Special Meeting with Shareholders Supporting All Proposals
Rand Capital Corporation (Nasdaq:RAND) (“Rand” or “Rand Capital”), a business development company, announced today that based on the preliminary voting results provided by the independent inspector of election, but subject to certification of the final voting results by the independent inspector of election, all proposals related to the transformational transactions with East Asset Management, LLC (“East”) were approved at a special meeting of shareholders (the “Meeting”) held on May 16, 2019.
At the special meeting, shareholders:
- Approved the issuance and sale of approximately 8.3 million shares of common stock to East at a price per share of $3.00 for total consideration of $25 million in cash and income-producing portfolio assets pursuant to a Stock Purchase Agreement dated January 24, 2019.
- Approved the issuance of shares to East under the Nasdaq listing rules.
- Approved the Company’s entry into an investment advisory agreement and the resulting externalization of management.
- Approved the amendment of the Company’s certificate of incorporation to increase the number of authorized shares of common stock to 100 million shares.
Allen F. “Pete” Grum, President and CEO, noted, “We are pleased that shareholders confirmed their support for management to advance this transformational transaction and provide a path for enhanced shareholder returns. We look forward to a strong future with East Asset Management.”
Rand expects the transaction to close in the second half of 2019, subject to receipt of required regulatory approvals.
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). Rand currently focuses its equity investments in early or expansion stage companies and generally lends to more mature companies. The Company seeks investment opportunities in businesses with strong leaders who are bringing to market new or unique products, technologies or services that have a high potential for growth. Additional information can be found at the Company’s website where it regularly posts information: http://www.randcapital.com/.