Exhibit 99.1
Hercules Capital Announces Share Repurchase
Program – Up To $25.0 Million Representing
Approximately 2.4% of Common Stock Outstanding(1)
PALO ALTO, Calif., December 18, 2018 –Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”), the leading specialty finance company to innovative, venture growth,pre-IPO and M&A stage companies backed by leading and top tier venture capital firms, today announced that its Board of Directors has approved a stock repurchase plan (the “Company10b5-1 Plan”) to acquire up to $25.0 million in the aggregate of Hercules’ common stock at prices that may be above or below net asset value, in accordance with the guidelines specified in Rule10b-18 and Rule10b5-1 of the Securities Exchange Act of 1934.
The Company10b5-1 Plan is designed to allow Hercules to repurchase its common stock at times when it otherwise might be prevented from doing so under insider trading laws. The Company10b5-1 Plan requires its agent to repurchase shares of common stock on Hercules’ behalf when the market price per share is above or below the most recently reported net asset value per share (including any updates, corrections or adjustments publicly announced by Hercules to any previously announced net asset value per share). Under the Company10b5-1 Plan, the agent will increase the volume of purchases made as the price of Hercules’ common stock declines, subject to volume restrictions. The timing and amount of any stock repurchases depend on the terms and conditions of the Company10b5-1 Plan, the market price of the common stock and trading volumes. Subject to future market conditions, and many other factors, there can be no assurance that any amount of common stock will be repurchased.
Unless extended or terminated by its Board of Directors, Hercules expects that the Company10b5-1 Plan will be in effect through the earlier of June 18, 2019 or such time as the approved $25.0 million repurchase amount has been fully utilized, subject to certain conditions.
Hercules’ prior stock repurchase plan expired in accordance with its terms on August 23, 2016.
The purchase of shares pursuant to the Company10b5-1 Plan is intended to satisfy the conditions of Rule10b5-1 and Rule10b-18, and will otherwise be subject to applicable law, including Regulation M, which may prohibit purchases under certain circumstances.
Pursuant to the Investment Company Act of 1940, as amended, Hercules is required to notify shareholders when such a program is initiated or implemented. The repurchase program does not require Hercules to acquire any specific number of shares and may be extended, modified, or discontinued at any time.
Accompanying Footnote:
| (1) | Based on a closing stock price as of December 17, 2018 and common stock outstanding of 96.8 million shares as of September 30, 2018. |
