Rand Capital Corporation (Rand), a venture capital company that makes primarily equity investments in companies with emerging product, service or technology concepts, has invested USD1.1 million as the lead investor of a USD2.0 million senior term loan package for GENICON.
GENICON is recognised as an emerging leader in the design, production and distribution of patented surgical instrumentation focused exclusively on laparoscopic, or minimally invasive, surgery. The new investment increased Rand's total investment to USD2.1 million, consisting of USD1 million of Series B Preferred Shares acquired in April 2015, a new USD1.0 million senior term loan provided in March of 2016, and a USD100 thousand expansion of the senior term loan in April 2016.
GENICON has earmarked the capital for procurement of equipment for its new operations center being built to meet growing demand for GENICON's patented surgical instruments used by surgeons for minimally invasive surgery. Once completed, the operations centre will increase GENICON's production capacity by a factor of six times, while improving profitability through more efficient manufacturing using state-of-the-art equipment and processes.
Daniel P Penberthy, Rand's Executive Vice President, says: "GENICON represents an exciting investment in the rapidly expanding, global market for laparoscopic, or minimally invasive, medical devices. GENICON has been growing successfully as its patented surgical instruments are recognized for their quality, capabilities and reliability. And, this investment is part of our strategic effort to broaden the geographic diversity of our portfolio."
Gary Haberland, founder and CEO of GENICON, adds: "We appreciate the continued confidence that Rand and our other investors place in us. Our expansion into the new operations facility supports our growth and continued success. It would not be possible without the capital contributions of our investors."
