Great Elm Capital Corp. Announces Final Results of Its Rights Offering
Great Elm Capital Corp. (GECC) completed a non-transferable rights offering, selling approximately 3 million shares at a subscription price of $12.50 per share, generating about $37.5 million in gross proceeds. The offering concluded on June 10, 2022. The funds will be primarily used for opportunistic investments in specialty finance businesses and general corporate purposes. CEO Matt Kaplan expressed gratitude for shareholder support, emphasizing that the additional capital would help execute the company's growth strategy and take advantage of market opportunities.
- Raised approximately $37.5 million in gross proceeds from the rights offering.
- Funds will be used for investments in specialty finance and corporate purposes, aligning with the company's growth strategy.
- Increased capital allows the company to capitalize on market volatility and investment opportunities.
- The reliance on market conditions and credit markets poses risks to investment performance.
- Potential economic impact from COVID-19 may affect the company and its portfolio.
WALTHAM, Mass., June 13, 2022 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (the “Company” or “GECC”) (NASDAQ: GECC) announced the final results of its non-transferable rights offering, which entitled holders of rights to purchase one new share of common stock for every one right held at a subscription price of
In total, the Company sold approximately 3.0 million shares of its common stock for aggregate gross proceeds of approximately
The Company intends to use the net proceeds from the offering primarily to (i) to make opportunistic investments, in accordance with its investment objectives and policies, including investments in specialty finance businesses and (ii) for general corporate purposes.
“We appreciate the support from our shareholders for this offering, which will provide capital to execute on our growth strategy and pursue our robust pipeline of investments. Increased scale will benefit our shareholders as we leverage our infrastructure and further diversify our portfolio,” said Matt Kaplan, GECC’s Chief Executive Officer. “Our focus on Specialty Finance is gaining traction and we are excited to have additional capital available to grow this platform. In addition, the current market volatility is beginning to provide opportunities that we can now take advantage of with our increased flexibility. We remain confident in our ability to execute on the strategic direction we outlined in March.”
Oppenheimer & Co. Inc. and Imperial Capital, LLC acted as dealer managers for the offering.
About Great Elm Capital Corp.
Great Elm Capital Corp. is an externally managed, business development company that seeks to generate current income and capital appreciation by investing in debt and income generating equity securities, including investments in specialty finance businesses.
Cautionary Statement Regarding Forward-Looking Statements
Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “continue,” “upside,” “potential” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are: conditions in the credit markets, the price of GECC common stock, the performance of GECC’s portfolio and investment manager and risks associated with the economic impact of the COVID-19 pandemic on GECC and its portfolio companies. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K, GECC’s Quarterly Reports on Form 10-Q and other reports filed with the SEC. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
Media & Investor Contact:
Investor Relations
Garrett Edson
investorrelations@greatelmcap.com
FAQ
What was the outcome of Great Elm Capital Corp.'s rights offering announced on June 13, 2022?
What will Great Elm Capital Corp. do with the proceeds from the rights offering?
When did the rights offering for GECC expire?
How many shares did GECC sell during the rights offering?
