This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Rand Capital Announces Second Quarter Results

  • Net Asset Value is $3.28 per share for the quarter ending June 30, 2010
  • One new investment and one follow-on investment totaling $1,300,000
  • Following end of the quarter, one portfolio exit – Innov-X Systems, Inc. generated $5.6 million

BUFFALO, N.Y., July 22, 2010 (GLOBE NEWSWIRE) -- Rand Capital Corporation (Nasdaq:RAND) ("Rand"), a business development company (BDC) that provides capital and managerial expertise for small to medium-sized private companies, announced its financial results for the second quarter ended June 30, 2010 highlighting a net asset value of $3.28 per share, a decrease of ($0.02) from March 31, 2010. At the end of the second quarter, Rand's total investment portfolio was valued at $26.4 million, which exceeds its cost basis of $17.6 million, reflecting $8.8 million in net unrealized appreciation.

Allen F. Grum, President of Rand Capital, stated: "We had a busy and productive quarter.  Mid America Brick was a transaction that we initiated three years ago and too which we led the equity raise. They expect to begin manufacturing bricks next year and will have an initial capacity of 60 million bricks annually. Following the end of the quarter, we were also pleased with our exit from Innov-X Systems, Inc. This was the largest exit in Rand Capital SBIC's history and had an IRR in excess of 80%." 

Portfolio Activities

During the quarter:

  • Rand made an $800,000 investment in Mid America Brick (Mexico, MO) ( www.midamericabrick ).  Mid America Brick manufactures face brick for residential and commercial construction. They will be the largest producer of bricks in the region.
  • Also during the quarter, Rand made a $500,000 follow-on investment in Microcision LLC (Philadelphia, PA) ( www.microcision.com ).  Microcision is a manufacturer of custom medical implants which includes dental implants sold through its wholly owned subsidiary Aeton Medical ( www.aetonmed.com ) including precision machined components, implants and assemblies. Aeton has developed a proprietary line of dental ST abutments, flathead drills, healing caps and other unique products for the dental implant market.

Subsequent to the quarter, Innov-X Systems, Inc. (Woburn, MA) ( www.innovsys.com ) was acquired by Olympus, a Japanese company. Rand originally invested in Innov-X in 2004 and invested a total of $1.9 million in a series of five investment tranches which will provide Rand an estimated 4.75 times return on its original investment.

Safe Harbor Statement

Information contained in this release, other than historical information, should be considered forward-looking, and may be subject to inherent uncertainties in predicting future results and conditions. These statements reflect the Corporation's current beliefs and are subject to a number of risk-factors, including: general economic conditions which affect Rand and our portfolio companies' operations; valuation and illiquid nature of the portfolio investments; high degree of risk from investing in private companies; the regulated environment in which we operate; the amount of debt resulting from borrowing funds from the SBA; dependency upon key management for investment decisions; and the competitive market for investment opportunities and fluctuations in quarterly results. Please see the Corporation's Form 10-Q, Item 1A, previously filed with the Securities and Exchange Commission for a detailed discussion of the risks and uncertainties associated with the Corporation's business. Except as otherwise required by Federal securities laws, Rand Capital Corporation and Rand Capital SBIC, Inc. undertakes no obligation to update or revise forward-looking statements for new events and uncertainties.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,090.23 +60.02 0.33%
S&P 500 2,092.37 +10.49 0.50%
NASDAQ 4,813.8910 +40.4190 0.85%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs