Rand Capital Corp (NASDAQ: RAND) reported Q3 EPS of ($0.46), versus ($0.03) reported last year.

Allen F. (“Pete”) Grum, President and Chief Executive Officer of Rand Capital, commented, “We are pleased to have received approval from the SBA, which was the final regulatory approval required to close on our transaction with East Asset Management (“East”). Having received that approval, we anticipate closing the transaction in November. The closing of this transformational transaction culminates approximately two years of work and we look forward to continuing our path forward with East. In the coming months, our Board and management will make best efforts to continue the steps to transform Rand into a regulated investment company (“RIC”) and complete the anticipated special dividend outlined in our proxy statement for the special shareholders meeting which was held in May.”

He noted, “We were disappointed with our third quarter financial results, as reflected in the decrease in our NAV. Investing in small and growing businesses and valuing them on a quarterly basis is complex. The valuation changes we recorded for several of our portfolio companies this quarter were unrealized and we believe that, over time, the companies can fulfill their potential and we may see reversals of some of those unfavorable valuation adjustments that were taken this quarter.”

Mr. Grum added, “We curtailed our investment activity over the past 18 months as we completed the requirements of the East transaction, including pursuit of the SBA approval. We now expect to increase our investment activity, utilizing the additional capital from the East transaction and our historically high cash balances in our SBIC subsidiary. We currently have $1.47 per share in cash and will substantially increase that balance after closing on the East transaction. Additionally, the Board renewed and increased our longstanding share repurchase program. With the increased cash from the East transaction, buying back shares is a viable option.”

For earnings history and earnings-related data on Rand Capital Corp (RAND) click here.