Rand Capital Corporation (Nasdaq: RAND) (“Rand” or the “Company”), a business development company providing alternative financing for lower middle market companies, today announced the successful completion of the previously reported acquisition of its portfolio company, SciAps, Inc., by Spectris plc (LSE: SXS). The transaction closed on August 21, 2024, and yielded total proceeds for Rand at the closing of $13.1 million, exceeding the June 30, 2024 valuation for Rand’s equity and debt investments in SciAps of $10.8 million.

The proceeds from the sale payable at closing to Rand consisted of $2.1 million in debt repayment, $165,000 in interest income and loan-related fees, and $10.8 million in equity return. These totals also reflect $244,000 held in transaction-related escrows.

“The sale of SciAps has delivered a substantial return on our initial 2013 investment,” stated Daniel P. Penberthy, President and CEO of Rand Capital. “With an equity investment that had a cost basis of $3.1 million, this outcome highlights the impressive success of the sale. The repayment of debt by SciAps as part of the acquisition transaction will reduce our interest income in the short term, however, the proceeds from the equity return will further support our strategic shift towards a more debt focused investment portfolio. These proceeds have enhanced our liquidity and strengthened our position to identify and capitalize on new debt opportunities, which we expect will further drive our interest income and shareholder dividends over the long term.”

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 businesses that have sustainable, differentiated and market-proven products, revenue of more than $10 million and EBITDA in excess of $1.5 million. 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: 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 impact of the repayment of debt by SciAps as part of the transaction on the Company’s interest income in future periods; the strategy of the Company and its outlook; statements regarding maintaining or increasing interest income earned by the Company and the Company’s dividend; 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, 2023, 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.

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

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