BUFFALO, N.Y.--(BUSINESS WIRE)--Rand Capital Corporation (Nasdaq: RAND), a business development company, today announced that it recently funded a $500,000 Series B Preferred stock follow-on investment in its portfolio company, Centivo Corporation. The investment was part of a $34 million capital raise and brings Rand’s total investment in Centivo to $800,000.
Allen F. (“Pete”) Grum, President and Chief Executive Officer, noted, “We are excited to further support Centivo’s efforts to bring lower cost, higher quality health care plans to more markets. We continue to support our legacy portfolio of investments that demonstrate the potential to provide long-term capital appreciation. And, even as we are focused primarily on building an income producing portfolio, we plan to continue to invest into those legacy companies alongside other co-investors. We believe that our $500k investment into Centivo’s recent $34 million private placement is evidence of our evolved strategy.”
In 2020, Centivo has experienced significant growth, tripling the number of clients and members it serves. Centivo is a different type of digital health plan for self-funded employers that intends to provide savings as compared with traditional insurance carriers and is easier to use for employers and employees. Centivo’s health plan solution is available to mid-sized and large employers in New York, New Jersey, Connecticut, Southern California, Florida, and North Carolina. With the additional capital, Centivo plans to expand to more markets in 2021.
ABOUT RAND CAPITAL
Rand Capital (Nasdaq: RAND) is an externally-managed Business Development Company (BDC) with a wholly-owned subsidiary licensed by the U.S. Small Business Administration (SBA) as a Small Business Investment Company (SBIC). The Company’s investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately-held, lower middle market companies with committed and experienced managements in a broad variety of industries. Rand invests in early to later stage businesses that have sustainable, differentiated and market-proven products, revenue of more than $2 million and a path to free cash flow or up to $5 million in EBITDA. The Company’s investment activities are managed by its external investment adviser, Rand Capital Management, LLC. Additional information can be found at the Company’s website where it regularly posts information: https://www.randcapital.com/.
