BUFFALO, N.Y., Nov. 6, 2009 (GLOBE NEWSWIRE) -- Rand Capital Corporation
(Nasdaq:RAND) ("Rand"), a business development company (BDC) that provides
capital and managerial expertise for small to medium-sized private companies,
announced that it has invested $250,000 in Rheonix, Inc. (www.rheonix.com),
based in Ithaca, New York.
Rheonix began operations and was later spun out of the microfluidic division of
Kionix, Inc. (www.kionix.com), also headquartered in Ithaca, New York. Kionix is
a global leader in the design and fabrication of high-performance,
silicon-micromachined, MEMS inertial sensors.
Rheonix's novel CARD(TM) (Chemistry And Reagent Device) microfluidic technology,
based on technology developed at Cornell University, provides a fully automated
"point-of-care" (POC) or "point-of-use" (POU) diagnostic platform with
applications in a broad spectrum of markets including human and veterinary in
vitro diagnostics, biopharmaceutical manufacturing, food and beverage
manufacturing, food/water safety testing, and homeland security/defense
applications. The fully-integrated system permits the completely-automated
analysis of "raw" samples, with all preparative, analytical, and readout
functions performed on the CARD(TM), with virtually no intervention required by
the analyst. Coupled with a simple computer interface that controls all
functions on the CARD(TM), this powerful diagnostic platform finally provides a
revolutionary means for individuals of varying technical expertise, including
unskilled analysts, to easily perform rapid POC and POU testing. Rheonix also
maintains a separate Corporate Development and Scientific Affairs facility in
Grand Island, New York, following their 2008 acquisition of Innovative
Biotechnologies International, Inc. ("IBI").
Also participating with Rand in the financing round were Cayuga Venture Fund
III, L.P. (Ithaca, NY), Onondaga Venture Capital Fund, LLC (Syracuse, NY) and
angel investors.
Daniel Penberthy, Executive Vice-President of Rand Capital, stated, "We have
watched both Rheonix and IBI develop their technologies over the last several
years, and now believe the Company is positioned with a device that will be
accepted into the marketplace. The development of the Company to this stage is a
credit to both the strength of its management team, and the quality of its
intellectual property. We welcome the chance to work with the Company and make
further investment as it continues to achieve key business milestones."
Anthony Eisenhut, President and CEO of Rheonix, Inc., stated that "Rheonix is
bringing to market a robust, affordable molecular diagnostic platform that
allows for multi-step central laboratory assays to be completed entirely on a
disposable plastic card. Our investors have recognized the world class science
that has produced such practical, yet powerful innovations. We value their
support as we ramp up efforts to commercialize a series of molecular diagnostic
assays aimed at the infectious disease market."
Safe Harbor Statement
Information contained in this release, other than historical information, should
be considered forward-looking, and may be subject to inherent uncertainties in
predicting future results and conditions. These statements reflect the
Corporation's current beliefs and are subject to a number of risk-factors,
including: general economic conditions which affect Rand and our portfolio
companies' operations; valuation and illiquid nature of the portfolio
investments; high degree of risk from investing in private companies; the
regulated environment in which we operate; the amount of debt resulting from
borrowing funds from the SBA; dependency upon key management for investment
decisions; and the competitive market for investment opportunities and
fluctuations in quarterly results. Please see the Corporation's Form 10-Q, Item
1A, previously filed with the Securities and Exchange Commission for a detailed
discussion of the risks and uncertainties associated with the Corporation's
business. Except as otherwise required by Federal securities laws, Rand Capital
Corporation and Rand Capital SBIC, Inc. undertakes no obligation to update or
revise forward-looking statements for new events and uncertainties.
ABOUT RAND CAPITAL
Rand Capital is a publicly held Business Development Company (BDC), and its
wholly owned subsidiary is licensed by the Small Business Administration (SBA)
as a Small Business Investment Company (SBIC). Rand and its subsidiaries provide
capital and managerial expertise to small and medium sized private companies
that lack sufficient channels to the capital markets. Rand is traded on the
NASDAQ under the symbol "RAND". Rand is headquartered in Buffalo, NY.
www.randcapital.com
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CONTACT: Rand Capital Corporation
Investor Contact:
Daniel Penberthy, Executive Vice-President
716.853.0802
dpenberthy@randcapital.com
