Keating Capital, Inc. Announces Results of Rights Offering of Common Stock

  Keating Capital, Inc. Announces Results of Rights Offering of Common Stock

Business Wire

GREENWOOD VILLAGE, Colo. -- December 17, 2013

Keating Capital, Inc. (the “Company”) (Nasdaq: KIPO), a closed-end fund that
has elected to be regulated as a business development company under the
Investment Company Act of 1940, today announced the results of its
non-transferable rights offering, which expired on December 16, 2013, at 5:00
p.m. New York City time.

The Company issued to its stockholders of record as of November 20, 2013 (the
“Record Date”), non-transferable rights to subscribe for up to 2,945,113
shares of the Company's common stock. Record Date stockholders received one
right for every three shares of common stock owned on the Record Date. The
rights, which entitled holders to purchase one new share of common stock for
every one right held, were not listed for trading on Nasdaq or any other stock
exchange.

The final subscription price per share in the rights offering was $6.00. The
rights offering is expected to result in the issuance of 713,562 additional
shares of the Company's common stock. Accordingly, the net proceeds after
payment of dealer-manager fees, but before other offering expenses, are
expected to be approximately $4,110,000. However, these results are based upon
the subscriptions for shares received, and remain subject to receipt of final
payment for such shares in accordance with the terms and conditions of the
rights offering.

The net proceeds will be used by the Company to make new portfolio company
investments in accordance with its investment objective and for general
working capital purposes.

As of September 30, 2013, Keating Capital’s total net assets were $70.0
million, or $7.93 per share, based on outstanding shares of 8,835,340. Based
on the results of the offering as described above, the Company’s pro forma net
asset value as of September 30, 2013 would be $74.1 million, or $7.76 per
share, based on 9,548,902 shares outstanding after the rights offering. This
represents dilution to existing stockholders of $0.17 per share, or 2.1%. This
pro forma net asset value calculation only reflects the increase in cash and
shares outstanding as a result of the rights offering, and it does not reflect
any changes in fair value of the Company’s portfolio companies since September
30, 2013, nor does it take into account any of the Company’s operating
expenses since September 30, 2013.

Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial
Services Inc. (NYSE MKT: LTS), acted as the dealer-manager for the rights
offering.

About Keating Capital, Inc.

Keating Capital (www.keatingcapital.com) is a closed-end fund (regulated as a
business development company under the Investment Company Act of 1940) that
specializes in making pre-IPO investments in emerging growth companies that
are committed to and capable of becoming public. Keating Capital provides
investors with the ability to participate in a publicly traded fund that
allows its stockholders to share in the potential value accretion that Keating
Capital believes typically occurs once a company transforms from private to
public status. Keating Capital’s shares are listed on Nasdaq under the ticker
symbol “KIPO.”

Forward-Looking Statements

This press release contains certain forward-looking statements, including
statements with regard to Keating Capital’s proposed securities offering and
the anticipated use of the net proceeds of the offering. Words such as
“believes,” “intends,” “expects,” “projects,” “anticipates,” and “future” or
similar expressions are intended to identify forward-looking statements. These
forward-looking statements are subject to the inherent uncertainties in
predicting future results and conditions. Certain factors could cause actual
results and conditions to differ materially from those projected in these
forward-looking statements. These factors are identified from time to time in
Keating Capital’s filings with the Securities and Exchange Commission,
including the Prospectus. Keating Capital undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. Information contained on Keating
Capital’s website is not incorporated by reference into the Prospectus and you
should not consider that information to be part of the Prospectus.

Contact:

Investor Relations:
Keating Capital, Inc.
Margie L. Blackwell, 720-889-0133
Investor Relations Director
mb@keatinginvestments.com
 
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