Great Elm Capital Corp. (“GECC”) Raises $15.0 Million of Equity

Rhea-AI Summary

Great Elm Capital Corp. (NASDAQ: GECC) has successfully raised $15.0 million through an equity offering of approximately 1.3 million shares at $11.65 per share. The shares, representing 9.9% of GECC's outstanding common stock, were issued to an affiliate of Booker Smith, a newly appointed director of Great Elm Group with expertise in corporate credit and real estate investing.

This equity raise is part of GECC's broader capital strategy, having secured nearly $30 million in equity at net asset value over the past 12 months. The additional capital will support the company's investment strategy focused on debt instruments, income-producing equity, and specialty finance businesses, while strengthening its balance sheet and operational scale.

Positive

• Raised $15.0 million in equity capital at $11.65 per share
• Successfully raised nearly $30 million in equity at NAV over past 12 months
• Strategic investment from experienced corporate credit and real estate investor
• Additional capital provides leverage for new investment opportunities

Negative

• 9.9% dilution of existing shareholders' ownership

News Market Reaction

-0.04%

1 alert

-0.04% News Effect

On the day this news was published, GECC declined 0.04%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

PALM BEACH GARDENS, Fla., Aug. 27, 2025 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (the “Company” or “GECC”), (NASDAQ: GECC), a business development company, has issued approximately 1.3 million shares, representing 9.9% of the Company’s outstanding common stock, at $11.65 per share for gross proceeds of $15.0 million to an affiliate of Booker Smith, a newly appointed director of Great Elm Group, Inc., with extensive experience in corporate credit and real estate investing.

This transaction marks the latest step in GECC’s ongoing growth trajectory. Over the past 12 months, GECC has raised nearly $30 million of equity at net asset value, strengthening the Company’s balance sheet and providing additional scale to support its long-term investment strategy.

“This capital raise provides GECC with additional capital that can be leveraged to pursue attractive investment opportunities in today’s markets,” said Matt Kaplan, GECC’s Chief Executive Officer. “It is also a clear vote of confidence in the Company’s turnaround, which began in March 2022, and in the strength of the platform we have built.”

The additional capital bolsters GECC’s ability to execute on its investment strategy, which is focused on generating sustainable income and total return through investments in debt instruments, income-producing equity, and specialty finance businesses. The transaction underscores the alignment and support from long-term institutional investors who recognize the progress GECC has made over the past three years.

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 Great Elm Capital Corp (GECC) raise in August 2025?

GECC raised $15.0 million through the issuance of approximately 1.3 million shares at $11.65 per share.

What is the purpose of GECC's $15 million equity raise?

The capital raise provides GECC with additional capital for pursuing attractive investment opportunities and strengthens the company's balance sheet to support its long-term investment strategy.

How many shares did GECC issue in the August 2025 equity offering?

GECC issued approximately 1.3 million shares, representing 9.9% of the company's outstanding common stock.

How much capital has GECC raised in the past 12 months?

GECC has raised nearly $30 million of equity at net asset value over the past 12 months.

Who purchased the newly issued GECC shares?

The shares were purchased by an affiliate of Booker Smith, a newly appointed director of Great Elm Group with extensive experience in corporate credit and real estate investing.