Rand Capital Increases Regular Quarterly Cash Dividend 25% to $0.25 per Share for Second Quarter 2023

Rhea-AI Summary

Rand Capital Corporation (NASDAQ: RAND) announced a quarterly cash dividend of $0.25 per share, marking a 25% increase from the previous quarter's dividend. This dividend will be distributed on June 14, 2023, to shareholders recorded by May 31, 2023. With approximately 2.6 million shares outstanding, the increase reflects Rand's strategy of growing its income-producing portfolio.

CEO Daniel P. Penberthy highlighted that the company's strong deal flow positions Rand to support future dividends and portfolio growth. The board will evaluate future dividend distributions based on taxable income estimates, which may differ from net income due to various accounting factors.

Positive

• Quarterly cash dividend increased by 25% to $0.25 per share.
• Strong income-producing portfolio supports future dividends.
• Approximately 2.6 million shares outstanding indicates manageable distribution.

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 a quarterly cash dividend of $0.25 per share, which was increased by $0.05 per share, or 25%, from the dividend paid in the first quarter of 2023. The dividend will be distributed on or about June 14, 2023, to shareholders of record as of May 31, 2023. Rand has approximately 2.6 million shares outstanding.

Daniel P. Penberthy, President and CEO, commented, “We have continued to execute our strategy by growing our income-producing portfolio, which has enabled us to increase our dividend. We believe that our deal flow and unique position in the market will help to continue to support future dividends and grow our portfolio.”

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 (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; statements regarding increasing our dividend or our ability to support the payment of dividends during any future period, 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, 2022, 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/20230426005832/en/

Company:

Daniel P. Penberthy

President and CEO

716.853.0802

dpenberthy@randcapital.com

Investors:

Deborah K. Pawlowski / Craig P. Mychajluk

Kei Advisors LLC

716-843-3908 / 716-843-3832

dpawlowski@keiadvisors.com / cmychajluk@keiadvisors.com

Source: Rand Capital Corporation

FAQ

What is the latest dividend amount for RAND?

Rand Capital Corporation announced a quarterly cash dividend of $0.25 per share.

When is RAND's dividend payment date?

The dividend for Rand Capital Corporation will be distributed on June 14, 2023.

What is the percentage increase of RAND's dividend from the last quarter?

The dividend was increased by 25% from the previous quarter.

Who is eligible to receive the dividend from RAND?

Shareholders of record as of May 31, 2023, will receive the dividend.

How does RAND determine its dividend distribution?

Rand's Board of Directors reviews estimates of taxable income available for distribution when declaring dividends.