Gladstone Investment Corporation (NASDAQ:GAIN), a $490 million market cap company with an impressive 12.5% dividend yield, announced today that it has entered into a new investment advisory and management agreement with its adviser, Gladstone Management Corporation.
This move follows a change of control at the adviser, which was previously disclosed and involved a voting trust agreement among certain members of the Gladstone family and other stockholders. According to InvestingPro, GAIN has maintained consistent dividend payments for 21 consecutive years, demonstrating strong shareholder commitment.
The new agreement, effective January 24, 2025, was approved by the company's stockholders at a meeting on January 4, 2024. It retains the same terms, fee structure, and service provisions as the original agreement dated June 22, 2005, with the only changes being the date and term of the agreement. The company maintains a healthy P/E ratio of 12.6 and has achieved revenue growth of 11.5% over the last twelve months.
The New Advisory Agreement ensures continuity in the management of Gladstone Investment Corporation's portfolio, with no changes to the operational or fee structure. The company, which is based in McLean, Virginia, specializes in investment management and advisory services.
In other recent news, Gladstone Investment Corporation has made notable strides in its business operations. The company reported an adjusted net investment income of $0.24 per share and realized capital gains of $42.3 million from a successful exit from Nth Degree. Additionally, Gladstone Investment has issued $126.5 million in new notes due 2030 and announced a $110 million notes offering, with Oppenheimer & Co. Inc. serving as the representative of the underwriters.
The company has also been active in acquisitions, completing the acquisition of defense firms Ricardo Defense Systems and Proteus Enterprises, as well as Nielsen-Kellerman. These acquisitions, which involved Gladstone Investment providing both equity and senior secured debt, are part of the company's strategy to foster capital gains for shareholders and generate income through dividends.
In terms of leadership changes, board member Paul W. Adelgren resigned, with a successor yet to be named, and CFO Rachael Easton was succeeded by Taylor Ritchie.
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