Rand Capital Increases Cash Dividend 50% to $0.15 Per Share for First Quarter 2022

Rhea-AI Summary

Rand Capital Corporation (NASDAQ: RAND) has declared a regular quarterly cash dividend of $0.15 per share, an increase of $0.05 from the previous year. The dividend will be paid on or about March 28, 2022, to shareholders on record by March 14, 2022. This increase reflects the company's strategic shift towards more income-producing investments, as noted by CEO Daniel P. Penberthy. The Board of Directors' decisions on dividends will depend on various factors including taxable income and other financial metrics.

Positive

• Dividend increased by $0.05 per share, reflecting confidence in income-generating investments.
• Commitment to delivering shareholder value and expectations of continued growth.

Negative

• None.

BUFFALO, N.Y.--(BUSINESS WIRE)-- Rand Capital Corporation (Nasdaq: RAND) (“Rand”), a business development company providing alternative financing for lower middle market companies, announced today that its Board of Directors declared its regular quarterly cash dividend distribution of $0.15 per share. This quarterly dividend represents a $0.05 per share increase from the previous regular quarterly dividends in 2021. The cash dividend will be distributed on or about March 28, 2022, to shareholders of record as of March 14, 2022.

“This dividend increase reflects the continued transformation of our portfolio to contain more income producing investments and takes into account our conservative expectations of the income from our current portfolio and our initial tax-based expense projections,” commented, Daniel P. Penberthy, President and Chief Executive Officer of Rand. “We have expectations of continued growth and remain committed to delivering value to our shareholders.”

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 income and expense projections for 2022, 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/20220228006111/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 dividend amount declared by Rand Capital Corporation?

Rand Capital Corporation declared a quarterly dividend of $0.15 per share.

When is Rand Capital Corporation's dividend payment date?

The dividend will be distributed on or about March 28, 2022.

What is the record date for the dividend distribution for Rand Capital Corporation?

The record date for the dividend distribution is March 14, 2022.

How much has Rand Capital Corporation increased its dividend?

Rand Capital Corporation has increased its dividend by $0.05 per share from the previous quarter.

What factors influence Rand Capital Corporation's dividend declarations?

The Board reviews estimates of taxable income available for distribution, which can differ from net income.