Horizon Technology (NASDAQ:HRZN) Finance Corporation (NASDAQ:HRZN) has disclosed the status of its ongoing "At-The-Market" (ATM) equity offering program. According to the company's latest regulatory filing with the SEC, from September 22, 2023, through June 20, 2024, Horizon sold approximately 2.85 million shares of its common stock, resulting in gross proceeds of around $33.1 million.
After accounting for commissions and offering expenses, the net proceeds stand at approximately $32.4 million. The company has also indicated that as of today, there is an available balance of approximately $116.9 million worth of common stock that can still be sold under the current ATM program.
This ATM offering allows Horizon Technology Finance Corporation to periodically sell its shares in the open market and is a common practice for companies seeking to raise capital flexibly. The proceeds from such offerings typically support general corporate purposes, including investment in portfolio companies, repayment of debts, and other strategic initiatives.
The details provided in the 8-K filing are not intended for promotional purposes and should not be construed as an endorsement of the company's financial health or investment potential. The information is furnished for compliance with Regulation FD and is not deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor is it incorporated by reference into any filing under the Securities Act of 1933, except as explicitly referenced in such filings.
This report is based on the statements made in the SEC filing and does not include subjective analysis or forward-looking statements. Horizon Technology Finance Corporation is a finance company that lends to and invests in development-stage companies, primarily in the technology, life science, healthcare information and services, and cleantech industries.
In other recent news, Horizon Technology Finance Corporation reported a slight growth in its portfolio to $711 million in Q1 2024. Despite a challenging environment with IPO and M&A activity below normal levels, the company demonstrated resilience by generating $26 million in investment income and maintaining a robust liquidity position of $91 million. The firm's strong debt portfolio yield has consistently covered earnings and distributions for over six years.
Horizon funded five debt investments totaling $33 million, all to existing portfolio companies, and closed $37 million in new loan commitments and approvals. The company anticipates portfolio growth in the latter half of the year, remaining selective in new originations.
While investment income saw a slight decrease from $28 million in the previous quarter, the venture lending market shows signs of recovery. These developments underline Horizon's strategic approach to navigate the complexities of the venture lending market.
InvestingPro Insights
Horizon Technology Finance Corporation's (NASDAQ:HRZN) recent "At-The-Market" equity offering program has been a significant step in capital raising, but what does the data say about the company's financial status? According to InvestingPro data, Horizon has a market capitalization of $411.49 million, with a P/E ratio standing at -27.43, reflecting market skepticism about its earnings potential. Despite this, the company has shown a robust revenue growth of 19.93% over the last twelve months as of Q1 2024, although its quarterly revenue did experience a slight dip of 6.81%. Investors may find comfort in the company's dividend yield, which is currently at 13.86%, particularly as Horizon has maintained its dividend payments for 15 consecutive years.
Two InvestingPro Tips shed light on the company's current financial state: Horizon pays a significant dividend to shareholders, which could be attractive for income-focused investors. Additionally, the company's stock generally trades with low price volatility, providing a level of stability in an investor's portfolio. However, the valuation implies a poor free cash flow yield, which could be a point of concern for growth-oriented investors. For those interested in a deeper dive into Horizon's financial metrics and additional investment insights, InvestingPro provides more tips that can be accessed at: https://www.investing.com/pro/HRZN. Take advantage of an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24. As of now, there are six additional InvestingPro Tips available for HRZN, offering a comprehensive analysis for informed decision-making.
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