Hercules Technology Growth Capital Announces Portfolio Update for Q2 2014

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  • Q2 2014 Closed Commitments of ~$198.6 million
  • 5 Portfolio Companies Currently in IPO Registration
  • 1 Completed M&A Liquidity Events During Q2 2014

PALO ALTO, Calif.--(BUSINESS WIRE)-- Hercules Technology Growth Capital, Inc. (NYSE: HTGC), the leading specialty finance company focused on providing senior secured loans to venture capital-backed companies in technology-related markets, including technology, biotechnology, life science, and energy & renewable technology industries, at all stages of development, today announced its Q2 2014 portfolio update.

“Hercules’ origination activity was very strong during the second quarter, with new commitments totalling $198.6 million,” said Manuel A. Henriquez, co-founder, chairman and chief executive officer of Hercules. “We are very pleased to have been able to continue to deploy our excess liquidity to a number of promising and innovative companies which also meet our stringent credit requirements. With a strong cash position and selective investment process, we believe Hercules is well positioned to continue meeting the robust demand for capital.”

New Originations for Q2 2014:

As of June 26, 2014, Hercules has originated approximately $198.6 million of debt commitments to new and existing portfolio companies.

Hercules has made new commitments to the following eleven companies, assisting in their future growth and development.

  • $35.0 million commitment to Alimera Sciences, Inc., a biopharmaceutical company that specializes in the research, development and commercialization of prescription ophthalmic pharmaceuticals.
  • $30.0 million commitment to Nanotherapeutics, Inc., an integrated biopharmaceutical company with a major focus on developing a diversified proprietary pipeline of products having both biodefense and medical applications.
  • $25.5 million commitment to CareCloud Corporation, a provider of cloud-based practice management, electronic health record, and medical billing software and services.
  • $22.5 million commitment to SkyCross, Inc., a global designer and manufacturer of advanced antenna and RF solutions.
  • $15.0 million commitment to Celator Pharmaceuticals, Inc., a pharmaceutical company developing advanced therapies to treat cancer based identifying synergistic ratios of drugs that improve tumor cell kill.
  • $15.0 million commitment to a software company that provides a commerce platform for retailers.
  • $10.0 million commitment to Pong Research Corporation, which develops cases for the Apple iPhone, iPad, and Android smartphones to increase range and transmit stronger signal, while reducing exposure to wireless energy.
  • $10.0 million commitment to Quanterix Corporation, a leader in high definition diagnostics, including its Simoa platform uses single molecule measurements to access previously undetectable proteins.
  • $10.0 million commitment to a specialty biopharmaceutical company focused on the development, manufacturing and commercialization of products for aesthetic medicine
  • $4.5 million commitment to Poplicus, Inc., a software company that creates proprietary analytics from big data in the public sector.
  • $4.0 million commitment to Zosano Pharma, Inc., a biopharmaceutical company developing a transdermal delivery technology for a broad range of therapeutic indications.

In addition, Hercules provided approximately $17.1 million of debt commitments and renewals to existing portfolio companies.

It is important to note that certain commitments may expire without being drawn upon, and commitments do not necessarily represent future cash requirements or future earning assets for Hercules. Our commitments may include conditions, such as reaching certain milestones, before the Hercules debt commitment would become available. Hercules is instituting more funding or performance based milestone requirements to mitigate risk which will affect our actual funding levels.

Principal Repayments:

As of June 26, 2014, Hercules received approximately $68.1 million in principal repayments, of which approximately $38.7 million were unscheduled early repayments.

Portfolio Company Liquidity Events for Q2 2014:

1. In April 2014, Hercules portfolio company Glori Energy, Inc. (NASDAQ: GLRI) completed its $185 million reverse merger with Infinity Cross Border Acquisition Corp. (NASDAQ: INXB) and closed a share tender offer and a warrant tender offer.

Current Companies in IPO Registration:

As of June 26, 2014, Hercules had warrant and equity positions in five (5) portfolio companies that had filed Registration Statements in contemplation of a potential IPO:

  • Box, Inc.
  • Dance Biopharm, Inc.
  • Good Technology
  • Zosano Pharma, Inc.
  • One company filed confidentially under the Jobs Act

There can be no assurances that these companies will complete their IPOs in a timely manner or at all.

About Hercules Technology Growth Capital, Inc.:

Hercules Technology Growth Capital, Inc. (NYSE: HTGC) is the leading specialty finance company focused on providing senior secured loans to venture capital-backed companies in technology-related markets, including technology, biotechnology, life science, and energy & renewable technology industries, at all stages of development. Since inception (December 2003), Hercules has committed more than $4.2 billion to over 270 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing.

Hercules’ common stock trades on the New York Stock Exchange under the ticker symbol "HTGC."

In addition, Hercules has two outstanding bond issuances of 7.00 percent Senior Notes due 2019—the April 2019 Notes and September 2019 Notes—which trade on the NYSE under the symbols “HTGZ” and “HTGY,” respectively.

Companies interested in learning more about financing opportunities should contact info@htgc.com, or call 650.289.3060.

Forward-Looking Statements:

Statements in this press release may constitute forward-looking statements for purposes of the safe harbor protection under applicable securities laws. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including, without limitation, those risks, uncertainties and factors referred to in the “Risk Factors” section of the Hercules Annual Report on Form 10-K for the year ended December 31, 2013, as well as the other documents and reports filed by Hercules with the Securities Exchange Commission. As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. Hercules is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Hercules Technology Growth Capital, Inc.
Main, 650-289-3060 HT-HN
info@htgc.com
or
Market Street Partners
Ed Keaney, 415-445-3238
ekeaney@marketstreetpartners.com

Source: Hercules Technology Growth Capital, Inc.

Released June 26, 2014