Rand Capital Announces $0.29 per Share Cash Dividend for First Quarter 2025

Rhea-AI Summary

Rand Capital (NASDAQ: RAND) has declared a quarterly cash dividend of $0.29 per share for the first quarter of 2025, payable on March 28, 2025, to shareholders of record as of March 14, 2025. Following a recent issuance of approximately 389,000 additional shares to investors, the company now has about 3.0 million shares outstanding.

The maintained dividend rate, combined with the increased share count, represents a 15% increase in total dividend distribution, reflecting the company's business resilience and commitment to shareholder value. CEO Daniel P. Penberthy emphasized the achievement of significant milestones in 2024 that enhanced their ability to return capital to shareholders.

Positive

• 15% increase in total dividend distribution
• Maintained quarterly dividend at $0.29 per share
• Successful issuance of 389,000 additional shares

Negative

• Dividend per share remained flat despite company growth

Reflects 15% increase in aggregate dividend amount distributed following recent stock issuance

BUFFALO, N.Y.--(BUSINESS WIRE)-- Rand Capital Corporation (Nasdaq: RAND) (“Rand” or the “Company”), a business development company providing alternative financing for lower middle market companies, announced today that its Board of Directors declared a quarterly cash dividend of $0.29 per share. The cash dividend will be distributed on or about March 28, 2025, to shareholders of record as of March 14, 2025. Rand has approximately 3.0 million shares outstanding.

Daniel P. Penberthy, President and CEO, commented, “In 2024, we reached several significant milestones that strengthened our ability to return capital to shareholders. Following our fourth quarter stock and cash dividend, we issued approximately 389,000 additional shares to investors. By maintaining our quarterly cash dividend at $0.29 per share, we are effectively delivering a 15% increase in total dividends distributed, demonstrating both the resilience of our business and our commitment to shareholder value. Looking ahead, we remain focused on sustainable dividend growth and long-term value creation.”

Additional Information Regarding Dividend Distributions

The amount and timing of dividend distributions, including future dividend distributions, are subject to the discretion of Rand’s Board of Directors. When declaring distributions, Rand’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.

ABOUT RAND CAPITAL

Rand Capital Corporation (Nasdaq: RAND) is an externally managed business development company (BDC). The Company’s investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately-held, lower middle market companies with committed and experienced managements in a broad variety of industries. Rand primarily invests in businesses that have sustainable, differentiated and market-proven products, revenue of more than $10 million and EBITDA in excess of $1.5 million. The Company’s investment activities are managed by its external investment adviser, Rand Capital Management, LLC. Additional information can be found at the Company’s website where it regularly posts information: randcapital.com.

Safe Harbor Statement

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, including but not limited to statements regarding the strategy of the Company and its outlook; statements regarding maintaining or increasing the Company’s dividend; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) evolving legal, regulatory and tax regimes; (2) changes in general economic and/or industry specific conditions; and (3) other risk factors as detailed from time to time in Rand’s reports filed with the Securities and Exchange Commission (“SEC”), including Rand’s annual report on Form 10-K for the year ended December 31, 2023, quarterly reports on Form 10-Q, and other documents filed with the SEC. Consequently, such forward-looking statements should be regarded as Rand’s current plans, estimates and beliefs. Except as required by applicable law, Rand assumes no obligation to update the forward-looking information contained in this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250303664676/en/

Company:

Daniel P. Penberthy

President and CEO

716.853.0802

dpenberthy@randcapital.com



Investors:

Deborah K. Pawlowski / Craig P. Mychajluk

Alliance Advisors IR

716-843-3908 / 716-843-3832

dpawlowski@allianceadvisors.com /

cmychajluk@allianceadvisors.com

Source: Rand Capital Corporation

FAQ

When will Rand Capital (RAND) pay its Q1 2025 dividend?

Rand Capital will distribute the Q1 2025 dividend of $0.29 per share on or about March 28, 2025, to shareholders of record as of March 14, 2025.

How much did Rand Capital (RAND) increase its total dividend distribution?

Rand Capital increased its total dividend distribution by 15% following the issuance of approximately 389,000 additional shares while maintaining the $0.29 per share quarterly dividend.

How many shares does Rand Capital (RAND) have outstanding after the recent issuance?

Rand Capital has approximately 3.0 million shares outstanding following the recent issuance of about 389,000 additional shares.

What factors determine Rand Capital's (RAND) dividend distributions?

Rand's dividend distributions are determined by the Board of Directors based on estimates of taxable income, considering unrealized appreciation/depreciation, income/expense recognition differences, and spillover income.