Horizon Technology Finance Announces Monthly Distributions for April, May and June 2024 Totaling $0.33 per Share and Special Distribution for April 2024 of $0.05 per Share
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Insights
The announcement by Horizon Technology Finance Corporation regarding monthly cash distributions and a special distribution is a significant event for shareholders and the market. The declared distributions of $0.38 per share reflect the company's financial health and commitment to returning value to shareholders. This move could indicate a robust cash flow position and a stable income stream from its loan portfolio, which is critical for a specialty finance company.
Moreover, the total distributions paid since the initial public offering amounting to $253 million is an impressive figure that showcases the company's ability to generate and distribute wealth over time. Investors typically view consistent and special distributions favorably as they provide direct income and can also signal management's confidence in the company's financial stability and future earnings potential.
It's important to highlight that the distributions are subject to estimates of taxable income, which may differ from consolidated net income due to various accounting treatments. This discrepancy could affect the actual cash amounts available for distribution and should be carefully considered by investors.
The distinction between taxable income and consolidated net income is crucial in understanding the financial implications of Horizon's distributions. Taxable income calculations take into account unrealized gains and losses, as well as temporary and permanent differences in income and expense recognition, which can significantly differ from GAAP net income.
Investors should be aware that the final determination of taxable income could impact the actual distribution amounts. Additionally, the tax attributes of the distributions will only be determined after the tax year closes, which could influence investor decisions regarding the timing of investment or divestment.
The Dividend Reinvestment Plan (DRIP) offered by Horizon allows shareholders to automatically reinvest their distributions into additional shares. This plan can be attractive to long-term investors seeking to compound their investments over time. The option to satisfy DRIP requirements through new shares or open market purchases provides flexibility and could have implications for the company's stock liquidity and market price.
Reinvested dividends can increase shareholder loyalty and provide the company with additional capital, potentially funding further loans and investments. However, it's important to consider the dilutive effect of issuing new shares, which could impact the stock's value. The reinvestment of distributions at market price also ties the benefit of the DRIP to the company's stock performance, making it a variable factor in an investor's portfolio strategy.
Ex-Dividend Date | Record Date | Payment Date | Amount per Share |
March 18, 2024 | March 19, 2024 | April 16, 2024 | |
April 17, 2024 | April 18, 2024 | May 15, 2024 | |
May 16, 2024 | May 17, 2024 | June 14, 2024 | |
Total: |
Ex-Dividend Date | Record Date | Payment Date | Amount per Share |
March 18, 2024 | March 19, 2024 | April 16, 2024 |
When declaring distributions, Horizon's board of directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.
Horizon maintains a "Dividend Reinvestment Plan" ("DRIP") that provides for the reinvestment of distributions on behalf of its stockholders, unless a stockholder has elected to receive distributions in cash. As a result, if Horizon declares a distribution, its stockholders who have not "opted out" of the DRIP by the distribution record date will have their distribution automatically reinvested into additional shares of Horizon's common stock. Horizon has the option to satisfy the share requirements of the DRIP through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Newly-issued shares will be valued based upon the final closing price of Horizon's common stock on a specified valuation date for each distribution as determined by Horizon's board of directors. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased by the DRIP plan administrator, before any associated brokerage or other costs, which are borne by Horizon.
Horizon Technology Finance Corporation (NASDAQ: HRZN), externally managed by Horizon Technology Finance Management LLC, an affiliate of Monroe Capital, is a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of Horizon is to maximize its investment portfolio's return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Horizon's filings with the Securities and Exchange Commission. Horizon undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Investor Relations:
ICR
Garrett Edson
ir@horizontechfinance.com
(646) 200-8885
Media Relations:
ICR
Chris Gillick
HorizonPR@icrinc.com
(646) 677-1819
View original content:SOURCE Horizon Technology Finance Corporation
FAQ
What is the amount of monthly cash distributions declared by Horizon for April, May, and June 2024?
What is the special distribution amount declared by Horizon for April 2024?
How much total distributions were announced by Horizon for the specified period?
How much total distributions has Horizon paid to its shareholders since its IPO in 2010?
Does Horizon offer a Dividend Reinvestment Plan (DRIP) for its stockholders?
