Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, June 3, 2022

Article Excerpt

HERCULES CAPITAL INC., $14.07, symbol HTGC on New York, is a business development company (BDC). Hercules provides senior secured loans to high-growth venture capital-backed companies in innovative industries, including technology, life sciences, and sustainable and renewable technologies. As well, through its wholly owned subsidiary, Hercules Adviser LLC, the company also maintains an asset management business through which it oversees investments for external parties. Since its founding in 2003, the company reports that it has made more than $14 billion in loans to nearly 600 companies. A highlight of the latest quarter was the IPO of Pineapple Energy LLC (symbol PEGY on Nasdaq). Hercules originally provided the solar power company with $12.3 million in venture debt financing. After the IPO, it holds a 2.5% interest in Pineapple. In the three months ended March 31, 2022, Hercules’s net investment income increased 3.6%, to $35.8 million, or $0.30 a share, from $34.6 million, or $0.30 a share, on fewer shares outstanding. During the first quarter, the company had…