Hercules Technology Growth Capital, Inc. (Nasdaq: HTGC), a leading debt and equity growth capital provider to technology and life science companies, announced today that its Board of Directors has approved the terms of a transferable rights offering of additional common stock of the Company (the "Offer").
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The Company will issue to stockholders of record as of March 24, 2006 (the "Record Date"), one transferable right for each three shares of common stock held on the Record Date. In order to be a Record Date stockholder, investors must hold shares of the Company's common stock by the close of trading on March 24, 2006. The rights will entitle holders to subscribe for additional shares of the Company's common stock at a price equal to 95% of the volume weighted average of the trading prices of the Company's common stock on the 10 trading days ending on the expiration date of the Offer. Holders will be able to purchase one share of common stock for every right held on the expiration date of the Offer. No fractional rights will be issued, as rights issuances will be rounded up to the next whole right. The rights are transferable and have been approved for quotation on the Nasdaq National Market under the symbol "HTGCR". The rights will begin trading on March 24, 2006.
Important Dates:
Rights Begin Trading: March 24, 2006
Record Date: March 24, 2006
Ex-Rights Date: March 27, 2006
Last Trading Date for Rights: April 12, 2006
Expiration Date (unless extended): April 13, 2006
Holders of rights who exercise all rights issued to them or purchased by them will be entitled to subscribe for additional shares at the subscription price described above pursuant to an over-subscription privilege. If sufficient shares are not available to honor all over-subscription requests, available shares will be allocated pro rata among those eligible rights holders who over-subscribe based on the number of rights issued to them by the Company on the Record Date. Record date stockholders will have preference in the over-subscription allocation over holders of rights purchased after commencement of the Offer.
A.G. Edwards & Sons, Inc. and JMP Securities LLC have been selected by the Company to act as Co-Dealer Managers for the Offer.
A registration statement with respect to the rights and the shares of common stock to be issued upon exercise of the rights has been filed with the Securities and Exchange Commission. The Offer may only be made by means of the prospectus included in such registration statement. The terms of the Offer are set forth in the prospectus and these securities may not be offered or sold except by means of the prospectus.
About Hercules Technology Growth Capital:
Founded in December 2003, Hercules Technology Growth Capital, Inc. is a NASDAQ traded specialty finance company providing debt and equity growth capital to technology-related companies at all stages of development. The company primarily finances privately-held companies backed by leading venture capital and private equity firms and also may finance certain publicly-traded companies. Hercules focuses its investments in companies active in technology and technology-related industries such as computer software and hardware, networking systems, semiconductors, semiconductor capital equipment, information technology infrastructure, Internet consumer and business services, telecommunications, and life sciences. The company's investments are originated through its principal office located in Silicon Valley, as well as additional offices in the Boston, Boulder and Chicago areas. Providing capital to publicly traded or privately held companies backed by leading venture capital and private equity firms involves a high degree of credit risk and may result in potential losses of capital.
For more information, please visit http://www.htgc.com . Companies interested in learning more about financing opportunities should contact info@htgc.com or call 650-289-3060.
Forward-Looking Statements:
The statements contained in this release that are not purely historical are forward-looking statements, which involve risk and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. These statements may be identified by their use of forward-looking terminology such as "believes," "expects," "may," "should," "would," "will," "intends," "plans," "estimates," "anticipates" and similar words, and include, but are not limited to, statements regarding the expectations, intentions or strategies of Hercules Technology Growth Capital, Inc. For these statements, Hercules claims the protection of the safe harbor for forward-looking statements provisions contained in the Private Securities Litigation Reform Act of 1995. You should be aware that Hercules' actual results could differ materially from those contained in the forward-looking statements due to a number of risks and uncertainties affecting its business. Factors that may cause actual results to differ from forward-looking statements include Hercules' limited operating history as a business development company, the extent to which Hercules incurs debt to fund its investments, fluctuations in interest rates, the concentration of Hercules' investments in a limited number of emerging-growth or expansion stage technology-related companies, the illiquid nature of the securities Hercules' holds, the highly competitive market for investment opportunities in which Hercules operates and others discussed in Hercules' filings with the Securities and Exchange Commission. The forward-looking statements contained in this release are made as of the date hereof, and Hercules assumes no obligation to update the forward-looking statements for subsequent events.
For Questions Specific to This Rights Offering:
The Altman Group
800-884-4590