Horizon Technology Finance Corporation, a leading specialty finance company, has announced that its board of directors has declared monthly cash distributions of $0.11 per share for the months of October, November, and December 2023. The total distributions for the quarter amount to $0.33 per share. Since its initial public offering in 2010, Horizon has paid a total of $226 million in distributions to its shareholders.
The declaration of distributions is based on the board of directors’ review of estimates of taxable income available for distribution. It is important to note that taxable income may differ from consolidated net income under generally accepted accounting principles due to various factors. These include changes in unrealized appreciation and depreciation, temporary and permanent differences in income and expense recognition, and the amount of spillover income carried over from one year to the next for distribution purposes. The final determination of taxable income and tax attributes will be made after the close of the tax year.
Horizon offers a Dividend Reinvestment Plan (DRIP) that allows stockholders to reinvest their distributions automatically unless they have opted to receive cash payments. Under the DRIP, distributions are reinvested into additional shares of Horizon’s common stock. The company has the option to fulfill the share requirements of the DRIP by issuing new shares of common stock or through open market purchases of common stock by the DRIP plan administrator. The valuation of newly-issued shares is based on the final closing price of Horizon’s common stock on a specified valuation date. Shares purchased through the open market will be valued based on the average price of applicable shares purchased by the DRIP plan administrator, excluding brokerage or other associated costs.
Horizon Technology Finance Corporation specializes in providing capital in the form of secured loans to venture capital-backed companies in various industries, including technology, life science, healthcare information and services, and sustainability. The company aims to maximize its investment portfolio’s return by generating current income and capital appreciation from the warrants it receives when making debt investments. Horizon is headquartered in Farmington, Connecticut, with additional offices in Pleasanton, California, and investment professionals located in Austin, Texas, Chicago, Illinois, Reston, Virginia, and Portland, Maine.
It is worth noting that the statements included in this announcement may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties and are not guarantees of future performance, condition, or results. Actual results may differ materially from those expressed in the forward-looking statements.
