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Today, Gladstone Capital Corporation (NASDAQ:GLAD), a company with a market capitalization of $671 million and an impressive 53.44% return over the past year, announced it has entered into a new investment advisory and management agreement with its adviser, Gladstone Management Corporation.
This move follows a change of control of the adviser, as detailed in a voting trust agreement involving key trustees and stockholders of Gladstone Management Corporation. According to InvestingPro data, GLAD maintains a robust 7.93% dividend yield and has maintained dividend payments for 25 consecutive years.
The agreement, which retains the same terms as the previous one, including fee structures and services, was ratified by Gladstone Capital's stockholders on January 24, 2024. The new contract is essentially a continuation of the previous arrangement, dated April 12, 2022, with the only modifications being the date and duration of the agreement. With a P/E ratio of 6.94 and trading near its 52-week high of $30.37, GLAD demonstrates strong market performance. For deeper insights into GLAD's valuation and growth prospects, check out the comprehensive analysis available on InvestingPro.
The renewal ensures continuity in the management of Gladstone Capital's investments, with the adviser continuing to provide the same level of service as stipulated in the original agreement. This development is significant for shareholders who may be interested in the stability of the company's advisory relationship. The company maintains a healthy current ratio of 1.47 and has achieved revenue growth of 11.79% over the last twelve months, indicating strong financial management.
In other recent news, Gladstone Capital Corporation has reported a slight increase in total interest income to $23.4 million for the quarter ending September 30, 2024. The company's annual net investment income grew by 12% to $46.1 million, while the quarter's net investment income decreased by 12% to $11 million. In line with these developments, Gladstone announced a significant equity exit from its investment in ARA, resulting in $63.7 million in proceeds.
The company also launched an offering of 5,561,275 shares of its 6.25% Series A Cumulative Redeemable Preferred Stock, a move aimed at raising capital for its operations and investments. Additionally, Gladstone Capital Corporation announced the resignation of board member Paul W. Adelgren, effective December 15, 2024, with no immediate successor named.
In other recent developments, the company announced a supplemental distribution of $0.40 per share in December and anticipates an active quarter of new originations. Gladstone's net assets increased to $471 million, maintaining a conservative leverage ratio with debt at 73% of Net Asset Value. These facts underscore Gladstone's strategic growth and resilience, as noted by market analysts.
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