Rand Capital Corporation (NASDAQ:RAND) Q1 2020 Earnings Conference Call - Final Transcript

May 11, 2020 • 01:30 pm ET


Rand Capital Corporation (NASDAQ:RAND) Q1 2020 Earnings Conference Call - Final Transcript


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Greetings and welcome to the Rand Capital Corporation First Quarter 2020 Financial Results. [Operator Instructions] A brief question-and-answer session will follow the formal presentation. [Operator Instructions]

It is now my pleasure to introduce your host Deborah Pawlowski, Investor Relations for Rand. Thank you. Miss Pawlowski. You may begin.

Deborah Pawlowski

Thank you, Victor and good afternoon everyone. We appreciate your interest in Rand Capital and for joining us today for Rand's first quarter 2020 financial results conference call.

On the line with me today are Pete Grum, our Chief Executive Officer; and Dan Penberthy, our Executive Vice President and Chief Financial Officer. You should have a copy of the release that crossed the wire this morning as well as the slides that will accompany our conversation today, if you don't have the slides, they are available on our website at www.randcapital.com.

If you would now turn to the slide deck and look at slide two. I want to point out some important information. As you are likely aware, we may make some forward-looking statements during this presentation and during the question-and-answer session. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ from where we are today. You can find the summary of these risks and uncertainties and other factors in the earnings release as well as in other documents filed by the company with Securities and Exchange Commission. These documents can be found on our website or at sec.gov.

So with that, let me now turn it over to Pete to begin. Pete?

Pete Grum

Thank you very much, Deb. Good afternoon everyone and thank you for your time and interest today. These are certainly unusual times given the COVID-19 pandemic and we hope that you and your families are well and safe. Even during this remote working situation, as you can see on slide three, we continue to work required to advance the transformation of Rand into a regulated investment company or RIC.

We had announced in March the special dividend of $43.7 million or $1.62 per share that represents the distribution of our accumulated earnings and profits since inception and is required in order for us to like be treated as a RIC for 2020. The dividend is being distributed today and the stock will begin trading next dividend tomorrow. Approximately 70% of the shares outstanding, elected to receive the dividend and stock and the remaining 30% either elective cash or did not provide an elective, for that 30% the distribution will be approximately $1.06 cash and about $0.56 of stock. The stock value is to determine the number of shares for the stock dividend was based on the volume weighted average price from the three days of trading that ended on April 29, the price was $2.20 per share.

Other news today is that the Board approved 1:9 reverse stock split. The reverse will be effective on May 21, at 5 PM and our stock will