Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
Full Circle Capital Corporation (Nasdaq:FULL) announced today the successful completion of its non-transferable rights offering, which expired on March 30, 2015 as scheduled.
The Company received subscriptions for approximately 94% of the shares offered, 17% of which represents commitments by management and Full Circle Advisors.
In addition, an institutional investor has committed to purchase approximately 214,000 shares in open market transactions over a seven-day period following the expiration date of the rights offering. Such investor has agreed to acquire the remainder of its committed shares in a private placement at $3.50 per share directly from the Company to the extent such shares are not purchased in open market transactions during such seven-day period.
The rights offering and additional commitments will result in the issuance of no more than 11,420,207 additional shares of the Company’s common stock. The foregoing results are based upon the subscriptions for shares received, and remain subject to receipt of final payment for such shares in accordance with the terms and conditions of the rights offering.
Estimated gross proceeds from the rights offering, before payment of dealer-manager fees and other offering expenses, are expected to be approximately $39 million. The net proceeds will be used by the Company for the origination of new investments in accordance with its investment objective, and for working capital and other general corporate purposes. The subscription price for the rights was $3.50 per share.
“We greatly appreciate the support we received from our shareholders and the confidence in our current strategic direction, and it is now incumbent upon us to execute,” said Gregg Felton, President and Chief Executive Officer of Full Circle Capital Corporation. “The successful completion of the rights offering was an important step in terms of positioning our business for sustainable long-term growth. With the proceeds received from the rights offering, we now have a solid capital base from which to fund new opportunities generated from our growing pipeline that fit within our return and risk parameters.”
The Company issued to its stockholders of record as of March 6, 2015 non-transferable rights to subscribe for up to 11,949,034 shares of the Company’s common stock. Record date stockholders received one right for each outstanding share of common stock owned on the record date. The rights, which entitled holders to purchase one new share of common stock for every one right held, were not listed for trading on the NASDAQ Global Market or any other stock exchange.
