Rand Capital Corporation Announces $0.10 Per Share Regular Quarterly Cash Dividend for Fourth Quarter 2021 and $0.04 Per Share Supplemental Cash Dividend

Rhea-AI Summary

Rand Capital Corporation (NASDAQ: RAND) announced a quarterly dividend of $0.10 per share and a supplemental dividend of $0.04 per share, totaling $0.14. The dividends will be distributed on or about December 31, 2021, to shareholders of record as of December 20, 2021. This payment reflects additional taxable income from previous years, offset by increased expenses from the surrender of its SBIC license. Future dividends remain at the Board's discretion, based on taxable income estimates which may differ from net income.

Positive

• Combined dividend of $0.14 per share, indicating confidence in financial stability.
• Supplemental dividend reflects additional taxable income, providing immediate income to shareholders.

Negative

• Increased expenses related to the surrender of the SBIC license could impact future profitability.
• Potential uncertainty regarding future dividend amounts and timing, reliant on Board discretion.

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 a regular quarterly dividend of $0.10 per share.

Rand also announced a net supplemental dividend of $0.04 per share that includes the spill over from additional taxable income generated in 2020 and short-term gains in 2021, offset by increased expenses related to Rand’s surrender of its SBIC license and fees payable for capital gains.

The Company’s Board of Directors declared the combined $0.14 per share dividend on December 10, 2021, based on the Company’s estimated financial results for 2021. This $0.14 per share cash dividend will be distributed on or about December 31, 2021, to shareholders of record as of December 20, 2021.

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 (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 invests in early to later stage businesses that have sustainable, differentiated and market-proven products, revenue of more than $2 million and a path to free cash flow or up to $5 million in EBITDA. 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: https://www.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, the timing and amount of future dividend distributions 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, 2020, 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/20211210005351/en/

Company:

Daniel Penberthy

President and CEO

Phone: 716.853.0802

Email: dpenberthy@randcapital.com



Investors:

Deborah K. Pawlowski

Kei Advisors LLC

Phone: 716.843.3908

Email: dpawlowski@keiadvisors.com

Source: Rand Capital Corporation

FAQ

What is the total dividend payment announced by Rand Capital Corporation?

Rand Capital Corporation announced a total dividend payment of $0.14 per share.

When will Rand Capital's dividend be paid?

The dividend will be paid on or about December 31, 2021.

Who will receive the dividend from Rand Capital?

Shareholders of record as of December 20, 2021, will receive the dividend.

What factors influence Rand Capital's future dividend distributions?

Future dividend distributions are based on taxable income estimates and are at the discretion of Rand’s Board of Directors.

What are the implications of Rand's SBIC license surrender on dividends?

Increased expenses from the surrender of the SBIC license could impact Rand's future profitability and dividend distributions.