BDCA Venture Inc. (BDCV) announced that its board has approved a change in its investment objective and authorized a stock repurchase program. Change in Investment Objective to Emphasize Current Income and Related Transition Period.
BDCA Venture's Board has decided to change the Company's investment objective to maximize total return by generating current income and, to a lesser extent, capital appreciation by primarily lending with warrants to emerging growth companies that are typically backed by venture capital firms.
BDCA Venture Adviser, LLC, the Company's investment adviser, intends to begin transitioning the Company to invest consistently with its new investment objective over the next several months. The Adviser will continue to manage the Company's existing portfolio holdings consistent with past practices.
The Adviser will also begin to identify suitable investments and, subject to the availability of suitable investment opportunities, will direct cash from exited investments into debt investment opportunities selected in accordance with the Company's new investment objective. However, the Adviser does not expect that the Company's position in debt investments will constitute a meaningful portion of the portfolio prior to December 1, 2014.
The company stated that its board authorized a stock repurchase program of up to $5 million. The stock repurchase program will be effective for six months from the date the Board adopted the stock repurchase program, which was September 22, 2014, and will expire on March 22, 2015, unless extended by the Board.
Because the Company is prohibited from repurchasing shares during its customary quarterly black-out period and to allow for the transition to its new investment objective, the Company is not expected to make any repurchases until early November following the expected filing of its quarterly report in late October.
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