LONDON, UK / ACCESSWIRE / July 17, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Hercules Capital, Inc. (NYSE: HTGC) (“Hercules”), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=HTGC. The largest specialty finance Company declared on July 14, 2017, a portfolio Company liquidity event with the acquisition of JumpStart Games Inc. (“JumpStart”) by NetDragon Websoft Holdings Ltd (“NetDragon”). NetDragon, which is located in Fuzhou, China, is a global leader in building online communities, especially in the field of gaming and education. For immediate access to our complimentary reports, including today’s coverage, register for free now at:
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Jumpstart received venture debt finance from Hercules Capital in 2014
In March 2014, Hercules invested $14.6 million in JumpStart in the form of venture debt financing. With regard to this transaction, Roy Liu, Hercules’ managing director announced that Hercules was pleased to provide the required finance to JumpStart to achieve its growth objectives and expand its product offerings. He acknowledged JumpStart’s talented management team, well-designed and imaginative games, and its strong brand.
As on March 31, 2017, the JumpStart senior secured debt investment stood at $3.1 million with a nonaccrual status. NetDragon completed the acquisition in Hong Kong on July 04, 2017.
JumpStart’s payment schedule
As per the transaction, Hercules is expected to receive quarterly interest payments up until June 30, 2018. Also, Hercules is estimated to receive principal repayment of a portion of its outstanding obligation at maturity on June 30, 2018, subject to adjustments of JumpStart. Moreover, the transaction covers the possibility of additional principal and interest recovery from JumpStart’s performance-based earnouts. It is estimated that the performance-based earn-outs will be payable on June 30, 2019, subject to the achievement of some performance milestones by JumpStart.
Hercules records nearly $400 Million in Total New Commitments for H1 2017
Hercules closed the first half of 2017 with a very strong portfolio activity including both announced and in-process events. Manuel A. Henriquez, Founder, Chairman, and Chief Executive Officer at Hercules reaffirmed the Company’s ‘slow and steady’ growth strategy with a focus on maintaining a conservative underwriting posture and debt-investment portfolio balances. He announced that new origination activity during the second quarter was robust as the Company closed $206 million of new commitments, which brought it to nearly $400 million in new commitments for the first half of 2017. This is higher than their initial target of $350 million to $375 million. He remained optimistic about the second half of 2017 and expects to continue gaining from rising interest rates, maintaining a high asset sensitive balance sheet. He also mentioned that the Company’s strong liquidity position enables it to onboard more and more new investments that meet their stringent underwriting practices.
JumpStart, which is also known as Knowledge Adventure, has created its niche space in kids’ educational games since 1991. It has made learning fun and has been designing games under its two flagship brands JumpStart® and Math Blaster®. Over these two decades, JumpStart has produced some quality educational products and thus earned the trust of millions of teachers, parents, and respected organizations such as Common Sense Media and The National Parenting Center.
About Hercules Capital, Inc.
Hercules is the leading specialty finance Company which focuses on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology, life sciences, and sustainable and renewable technology industries. The Company was founded in December 2003, and since then it has committed more than $6.7 billion to over 375 companies. It has become the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing.
Last Close Stock Review
Hercules Capital’s share price finished last Friday’s trading session at $13.44, slightly sliding 0.30%. A total volume of 233.97 thousand shares has exchanged hands. The Company’s stock price advanced 1.82% in the last one month and 6.50% in the previous twelve months. Shares of the Company have a PE ratio of 21.03 and have a dividend yield of 9.23%. The stock currently has a market cap of $1.12 billion.
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SOURCE: Pro-Trader Daily