Hercules to Expand Review of Investment Management Structural Alternatives
May 15 2017 - 6:00AM
Business Wire
Special Meeting of Shareholders Indefinitely
Postponed and Initial Proposal to Approve Investment Advisor
Withdrawn
Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the
“Company”), the leading specialty finance company to innovative
venture growth, pre-IPO and M&A stage companies backed by
leading venture capital firms, today announced that the Company
will expand its ongoing review designed to determine the most
appropriate investment advisory structure to enhance shareholder
value.
Accordingly, the Special Meeting of Stockholders previously
scheduled for June 29, 2017 has been postponed indefinitely, and
the proposal to seek stockholder approval to adopt an external
investment management structure has been withdrawn at this
time.
“We intend to reflect shareholder input we received during our
most recent shareholder outreach in our considerations of
adjustments and alternatives," stated Manuel A. Henriquez, Chairman
and Chief Executive Officer of Hercules. “The objective of the
Company and our Board has and continues to be creating value for
all of our shareholders. In light of the evolving market
environment, we continue to believe that externalization will build
on our competitive advantages and position the Company for
continued growth. We will continue to act in the best interests of
our shareholders and we look forward to building on our
collaborative relationship.”
Allyn C. Woodward, Jr., Lead Independent Director of the
Hercules Board, said, “Our decision to go down this path was made
after careful deliberation and was informed by feedback from
Hercules’ shareholders. As part of the Company’s expanded review,
the Independent Directors intend to engage an independent financial
adviser to consider all available options with regard to the
Company’s investment management structure. We are committed to
identifying and implementing the best path forward to position the
Company to maximize investment returns and deliver enhanced value
for all shareholders.”
The Company’s Board of Directors has not set a timetable for
this review process, and there can be no assurance that the Board’s
review process will result in an external investment management
structure being proposed or adopted or whether a special meeting
will be held, or if externalization is undertaken, as to its terms,
counterparty, structure or timing. The Company does not expect to
make further public comment regarding these matters unless and
until the Hercules Board has approved a specific alternative or
otherwise concludes its review process.
About Hercules Capital, Inc.
Hercules Capital, Inc. (NYSE: HTGC) (“Hercules”) is the leading
and largest specialty finance company focused on providing senior
secured venture growth loans to high-growth, innovative venture
capital-backed companies in a broad variety of technology, life
sciences and sustainable and renewable technology industries. Since
inception (December 2003), Hercules has committed more than $6.7
billion to over 375 companies and is the lender of choice for
entrepreneurs and venture capital firms seeking growth capital
financing. Companies interested in learning more about financing
opportunities should contact info@htgc.com, or call
650.289.3060.
Hercules’ common stock trades on the New York Stock Exchange
under the ticker symbol "HTGC."
In addition, Hercules has one outstanding bond issuance of 6.25%
Unsecured Notes due July 2024 (NYSE: HTGX).
Forward-Looking Statements
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. The Company may also make related oral, forward-looking
statements that reflect its current views with respect to future
events. The Company intends these forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements in the Private Securities Litigation Reform Act of
1995.
Forward-looking statements contained in this press release are
not representations of future outcomes or performance and are
subject to uncertainties and other factors that could cause actual
outcomes or performance to differ materially from those expressed
in the forward-looking statements including, without limitation,
arising from the Company’s decision to undertake a broader review
of its investment advisory structure, and other factors the Company
identifies from time to time in its filings with the Securities and
Exchange Commission. Although Hercules believes that the
assumptions on which these forward-looking statements are based are
reasonable, any of those assumptions could prove to be inaccurate
or incomplete and, as a result, the forward-looking statements
based on those assumptions also could be not correct. You should
not place undue reliance on these forward-looking statements. The
forward-looking statements contained in this press release are made
as of the date hereof, and except as required by applicable law,
Hercules assumes no obligation to update the forward-looking
statements for subsequent events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20170515005551/en/
Hercules Capital, Inc.Michael Hara, 650-433-5578 HT-HNInvestor
Relations and Corporate Communicationsmhara@htgc.com
Hercules Capital (NYSE:HTGC)
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