Great Elm Capital Corp. (“GECC”) Raises $13.2 Million of Equity at Net Asset Value

Rhea-AI Summary

Great Elm Capital Corp. (GECC) has announced a significant equity raise of $13.2 million through the issuance of approximately 1.1 million shares at a net asset value of $12.06 per share to Summit Grove Partners, Additionally, Great Elm Group (GEG) invested $3.3 million in Summit Grove Partners, strengthening alignment with shareholders.

The company has raised nearly $50 million of equity at net asset value year-to-date. Since management and board refresh in March 2022, GECC has nearly doubled its gross net asset value, demonstrating substantial growth and portfolio expansion.

Positive

• Raised $13.2 million through equity issuance at NAV
• Additional $3.3 million investment from GEG strengthens alignment with shareholders
• Nearly $50 million total equity raised at NAV year-to-date
• Doubled gross net asset value since March 2022

Negative

• Potential dilution from issuance of 1.1 million new shares

Insights

Financial Analyst

This $13.2 million equity raise at NAV represents a significant capital injection for GECC, bringing their total equity raises to nearly $50 million for the year. The issuance of 1.1 million shares at $12.06 per share demonstrates investor confidence in the company's book value. The strategic investment by Great Elm Group (GEG) of $3.3 million in Summit Grove Partners strengthens management alignment with shareholders. The doubling of gross NAV since March 2022 indicates successful execution of their growth strategy. This capital raise enhances GECC's lending capacity and should support portfolio expansion, potentially leading to increased interest income and dividends for shareholders. The transaction's structure at NAV prevents dilution to existing shareholders while providing growth capital.

PALM BEACH GARDENS, Fla., Dec. 12, 2024 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (the “Company” or “GECC”), (NASDAQ: GECC), a business development company, announced it issued approximately 1.1 million shares of the Company’s common stock at a current net asset value of $12.06 per share, for an aggregate gross purchase price of $13.2 million, to Summit Grove Partners, LLC (“SGP”).

Great Elm Group, Inc. (“GEG”) made a $3.3 million investment in SGP, further aligning the Company’s investment manager with shareholders.

“We have raised nearly $50 million of equity at net asset value year-to-date, strengthening our platform for future growth and expanding our scale,” said Matt Kaplan, GECC’s Chief Executive Officer. “Since the refresh of management and the board in March 2022, we have nearly doubled our gross net asset value, delivering meaningful value to our shareholders as we continue to expand our portfolio and leverage our infrastructure.”

Jason Reese, GEG’s Chief Executive Officer, said, “GEG remains committed to building and enhancing its credit platform, anchored by GECC. We are excited to support the continued expansion of GECC utilizing the templates from prior capital raises.”

About Great Elm Capital Corp.
GECC is an externally managed business development company that seeks to generate current income and capital appreciation by investing in debt and income generating equity securities, including investments in specialty finance businesses and CLOs.

Cautionary Statement Regarding Forward-Looking Statements
Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “continue,” “upside,” “potential” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are: conditions in the credit markets, rising interest rates, inflationary pressure, the price of GECC common stock and the performance of GECC’s portfolio and investment manager. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

This press release does not constitute an offer of any securities for sale.

Media & Investor Contact:
Investor Relations
investorrelations@greatelmcap.com

Source: Great Elm Capital Corp.

FAQ

How much equity did GECC raise in its latest funding round?

GECC raised $13.2 million through the issuance of approximately 1.1 million shares at a net asset value of $12.06 per share to Summit Grove Partners,

What is the current net asset value (NAV) per share for GECC?

According to the announcement, GECC's current net asset value is $12.06 per share.

How much has GECC raised in total equity at NAV in 2024?

GECC has raised nearly $50 million of equity at net asset value year-to-date in 2024.

How much did Great Elm Group invest in Summit Grove Partners?

Great Elm Group (GEG) invested $3.3 million in Summit Grove Partners,

How has GECC's net asset value changed since March 2022?

Since the management and board refresh in March 2022, GECC has nearly doubled its gross net asset value.