Acquisition of Nicholas Financial, Inc. by Prospect Capital Corporation May Not Be in Shareholders' Best Interests

 Acquisition of Nicholas Financial, Inc. by Prospect Capital Corporation May
                    Not Be in Shareholders' Best Interests

PR Newswire

SAN DIEGO and CLEARWATER, Fla., Jan. 17, 2014

SAN DIEGO and CLEARWATER, Fla., Jan. 17, 2014 /PRNewswire/ --Shareholder
rights attorneys at Robbins Arroyo LLP are investigating the acquisition of
Nicholas Financial (NASDAQ: NICK) by Prospect Capital Corporation (NASDAQ:
PSEC). On December 18, 2013, the two companies announced the signing of a
definitive merger agreement pursuant to which Prospect Capital will acquire
all outstanding shares of Nicholas Financial for $16.00 per share.

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Is the Proposed Merger Best for Nicholas Financial and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors
at Nicholas Financial is undertaking a fair process to obtain maximum value
and adequately compensate Nicholas Financial shareholders in the merger.

As an initial matter, the $16.00 consideration represents a one day premium of
only 4.7% based on Nicholas Financial's closing price on December 17, 2013.
This one day premium is substantially below the average one day premium of
nearly 30% for comparable transactions in the last five years. In addition,
Nicholas Financial shares traded at the consideration price on December 4,
2013, and traded as high as $17.20 as recently as October 25, 2013.

Given these facts, Robbins Arroyo LLP is examining whether the Nicholas
Financial board of directors are seeking to benefit themselves with their
decision to sell the company to Prospect Capital now rather than allow
shareholders to continue to participate in the company's continued success and
future growth prospects.

Nicholas Financial shareholders have the option to file a class action lawsuit
to ensure the board of directors obtains the best possible price for
shareholders and the disclosure of material information. Nicholas Financial
shareholders interested in information about their rights and potential
remedies can contact attorney Darnell R. Donahue at (800) 350-6003,
ddonahue@robbinsarroyo.com, or via the shareholder information form on the
firm's website.

Robbins Arroyo LLP is a nationally recognized leader in securities litigation
and shareholder rights law. The law firm represents individual and
institutional investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion of value for
themselves and the companies in which they have invested. 

Attorney Advertising.Past results do not guarantee a similar outcome.

Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com

SOURCE Robbins Arroyo LLP

Website: http://www.robbinsarroyo.com
 
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