The value of Rand Capital Corp.’s investments slipped by less than 1 percent, but the Buffalo venture capital firm’s asset value per share grew by 1.5 percent as the company continued to buy back its own shares, which are trading at a steep discount to their asset value.
Rand said its investments were worth $25.52 million at the end of June, down from $25.59 million at the end of March. But the value per share rose to $3.93, from $3.87. Rand said it repurchased 115,175 shares of its own stock during the quarter at an average price of $2.90 per share – a 26 percent discount from the company’s net asset value of $3.93 per share. Rand still has authorization from its board of directors to purchase an additional 132,000 shares.
Daniel Penberthy, Rand’s chief financial officer, said the buyback program helps bolster the company’s net asset value per share by spreading its holdings over a smaller number of shares.
During the quarter, Rand invested $500,000 in SocialFlow Inc., a New York City company that helps companies analyze trends in social media to determine the best time to advertise or take other actions. Rand also invested an additional $75,000 in Mercantile Adjustment Bureau, an Amherst collections agency.