Rand Capital Announces Final Certified Results for Special Meeting with Shareholders Approving All Proposals
Rand Capital Corporation (Nasdaq:RAND) (“Rand” or “Rand Capital” or the “Company”), a business development company, announced today that the independent inspector of elections for Rand’s special meeting of shareholders has issued the final certified voting results for the special meeting confirming that shareholders have approved all proposals related to the transformational transactions with East Asset Management, LLC (“East”).
Erland “Erkie” Kailbourne, Chairman of the Board, commented, “On behalf of the Rand Board of Directors, I would like to thank our shareholders for their support of this transaction. We believe the strategic investment by East Asset Management into Rand is both a testament to the success of our organization and a transforming opportunity for future growth.”
Under the terms of the stock purchase transaction, which was announced on January 25, 2019, East will purchase approximately 8.3 million shares of common stock, at a price of $3.00 per share, for total consideration payable to the Company of $25.0 million. The consideration will consist of a combination of cash and the contribution of income-producing portfolio assets. As a result of the stock purchase, East will hold approximately 57% of the outstanding shares of the Company. In addition, Rand will externalize the management of its assets.
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/.