Rand Capital Corporation Declares Dividend of $4.20 per Share.

On December 5, 2024, Rand Capital Corporation (NASDAQ: RAND) announced that its Board of Directors approved a dividend on the company’s outstanding shares of common stock. The dividend amounts to $4.20 per share and is set to be paid on January 24, 2025, to shareholders of record as of the close of business on December 16, 2024.

Shareholders have the option to receive the dividend either in cash or in shares of the company’s common stock. However, there is a Cash Limitation in place, limiting the total cash distribution to shareholders to 20% of the total dividend amount. The remaining portion of the dividend will be paid out in the form of shares of the company’s common stock. The exact distribution of cash and stock to each shareholder will depend on their individual election as well as those of other shareholders, subject to the Cash Limitation.

The dividend declaration reflects the company’s successful execution of strategic portfolio exits in 2024, resulting in significant gains. These gains were achieved despite challenges posed by the economic environment. Rand Capital Corporation realized a $7.7 million gain from the sale of SciAps in the third quarter, along with divesting holdings in BDC and ACV Auctions earlier in the year, contributing to total net realized gains of $11.1 million for the nine months ended September 30, 2024.

The company’s future strategy is focused on transitioning to a targeted, debt-focused portfolio primarily consisting of mezzanine debt investments. This strategic shift aims to provide steady income and enhance shareholder returns over the long term.

Details regarding the dividend distributions, including amounts, U.S. federal tax implications, and election processes, will be communicated to shareholders via election forms and accompanying materials. Shareholders must return the election forms by the Election Deadline of 5:00 p.m. Eastern Time on January 7, 2025, to ensure their choices are effective.

Shareholders holding their shares through intermediaries or in “street name” will receive information on the election process from their banks, brokers, or nominees. The number of shares of common stock to be distributed will be calculated based on the volume-weighted average price of the common stock on the Nasdaq Capital Market on December 11, 12, and 13, 2024.

Rand Capital Corporation operates as a business development company, focusing on debt and related equity investments in privately-held lower middle market companies. For further information, shareholders and investors are encouraged to visit the company’s website at randcapital.com.

This release may contain forward-looking statements within the meaning of applicable securities laws. It is advisable to review Rand’s reports filed with the U.S. Securities and Exchange Commission for detailed risk factors associated with such statements.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Rand Capital’s 8K filing here.

About Rand Capital

Rand Capital Corporation is a business development company specializing in subordinated debt with warrants or preferred equity and venture capital investments. Within private equity, the firm specializing in capital growth and lower middle market investments. Within venture capital, it specializing in early to late-stage private businesses.