Business & Finance
Business and Finance
Business and Finance
Fri, January 9, 2009 RCG Board of Directors Recommends Important Structure Change for The Fund
DALLAS--([ BUSINESS WIRE ])--The Board of Directors of Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG) intends to recommend to shareholders that the structure of the Fund be changed from a Business Development Company to a non-diversified closed-end fund to take advantage of the opportunities in the public market place. The core investment strategy of investing in growing entrepreneurially-managed companies will remain the same. Switching to a non-diversified closed-end fund will give more flexibility to invest in open market purchases including Chinese and other foreign corporations traded in the United States. The name of the Fund will be changed to RENN Global Entrepreneurs Fund, Inc. The Board of Directors intends to call a special shareholders meeting to vote on the issue. A proxy will be sent to shareholders giving full details.
According to Russell Cleveland, President, "The Stock Market of 2008, in my opinion, has created one of the best opportunities in history for investors to find values. Subject to shareholder approval, we need a new structure to respond to these opportunities. The rules for Business Development Companies are too restrictive and most securities purchased in the open market are not eligible. While the investment advisor will give up an incentive fee, I believe this change will be in the best interest of shareholders."
Renaissance Capital Growth and Income Fund III, Inc. was incorporated in 1994 as a Business Development Company, and began trading publicly in 1996. The offering price was $10.00 per share. The Fund has made total distributions of $19.19 per share. Beginning with $38.97 million in capital, the Fund has distributed cash and deemed dividends of $83.40 million. As of January 7, 2009, the net asset value was $19.33 million or $4.33 per share. Adding the $19.33 million to the distributions of $83.40 million gives a total of $102.73 million or $23.52 per share.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end business development company concentrating on investing in emerging publicly-traded growth companies. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund's current portfolio consists of investments in 26 businesses in various industries.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit [ www.rencapital.com ].
