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Rand Capital Corporation (NASDAQ:RAND), a business development company based in Buffalo, New York, with a market capitalization of $49 million and an attractive P/E ratio of 5.06, disclosed today that one of its portfolio companies, Tilson Technology Management, Inc., along with its subsidiaries, has filed for Chapter 11 bankruptcy. The filing was made in the United States Bankruptcy Court, District of Delaware on Thursday, May 29, 2025. According to InvestingPro data, Rand maintains strong financial health with a current ratio of 2.69, indicating robust liquidity position despite this development.
Rand Capital holds various preferred stock in Tilson Technology, amounting to an aggregate cost basis of $2,850,015 and a fair value of $9,500,000 as of March 31, 2025. This investment represents approximately 14.6% of Rand’s net assets and 15.3% of its total investments at fair value.
In addition to its holdings in Tilson Technology, Rand Capital also owns units in SQF Holdco LLC, which is affiliated with Tilson Technology but is not involved in the bankruptcy proceedings. The company’s investment in SQF Holdco LLC units had a cost basis of $250,000 and a fair value of $2,000,000 as of the end of the first quarter of 2025.
Rand Capital is currently assessing the potential impact of the bankruptcy on its investment in Tilson Technology. The situation remains under close monitoring by the company’s management. This news is based on a press release statement.
In other recent news, Rand Capital Corp reported its financial results for the first quarter of 2025, revealing a notable increase in net investment income and earnings per share. Net investment income rose by 45% year-over-year, reaching $1.2 million, while earnings per share increased to $0.42 from $0.33 in the same period last year. Despite a 3% decline in total investment income to $2 million, the company maintained its quarterly dividend and renewed its share repurchase program. Rand Capital’s cash position improved significantly, rising to $4.9 million from $835,000. Additionally, Rand Capital’s net asset value per share decreased to $21.99 from $25.31 at the end of 2024, primarily due to the issuance of additional shares related to the fourth-quarter dividend. The company also realized gains from portfolio redemptions and made a follow-on investment in ITA, a manufacturer of blinds and shades. Looking forward, Rand Capital aims to capitalize on improved market conditions while maintaining disciplined capital deployment.
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