Special Meeting of Shareholders Indefinitely Postponed and Initial
Proposal to Approve Investment Advisor Withdrawn
PALO ALTO, Calif.--(BUSINESS WIRE)--
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
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structure has been withdrawn at this time.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
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 email@example.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).
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170515005551/en/
Hercules Capital, Inc.
Michael Hara, 650-433-5578 HT-HN
Relations and Corporate Communications
Source: Hercules Capital, Inc.
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