Alcentra Capital Corporation (NASDAQ:ABDC) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of ListingItem 3.01of the Current Report on Form 8-K filed with the Securities and Exchange Commission on June 25, 2018 (the “Original Report”) regarding Alcentra Capital Corporation’s (the “Company”) noncompliance with the Nasdaq Stock Market’s (“Nasdaq”) audit committee requirements as a result of Steven H. Reiff’s resignation from the Company’s Board of Directors (the “Board”), effective as of June 25, 2018. Specifically, this amendment reports the Company’s receipt on June 26, 2018 of a notice from Nasdaq acknowledging the Company’s noncompliance with Nasdaq ListingRule5605(c)(2) and confirming that Nasdaq will provide the Company with the requisite cure period.
Apart from the below additional information with respect toItem 3.01, there are no changes to the disclosure in the Original Report.
| Item 3.01. | Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. |
As previously disclosed, the Company provided formal notice to Nasdaq on June 22, 2018 of Steven H. Reiff’s resignation from the Board, including the audit committee thereof, and indicating that, effective on June 25, 2018, the Company would not be in compliance with Nasdaq’s audit committee requirements.
Subsequently, on June 26, 2018, the Company received a letter from Nasdaq acknowledging the Company’s noncompliance with Nasdaq’s audit committee requirements as set forth in Nasdaq ListingRule5605(c)(2). The Nasdaq letter further provides that, consistent with Nasdaq Listing Rule 5605(c)(4), Nasdaq will provide the Company a cure period in order to regain compliance as follows: (1) until the earlier of the Company’s next annual shareholders’ meeting or June 25, 2019; or (2) if the next annual shareholders’ meeting is held before December 24, 2018, then the Company must evidence compliance no later than December 24, 2018.
The nominating and corporate governance committee of the Board has commenced the process of identifying a qualified independent director candidate to fill the vacancy created by Mr. Reiff’s resignation and satisfy the audit committee composition requirements of the Nasdaq Listing Rules. The Company expects to fill the vacancy created by Mr. Reiff’s departure within the time period provided under Nasdaq Listing Rule 5605(c)(4).
About Alcentra Capital Corporation (NASDAQ:ABDC)
Alcentra Capital Corporation is a specialty finance company that operates as a non-diversified, closed-end management investment company. The Company operates as a business development company and a regulated investment company. It provides customized debt and equity financing solutions to lower middle-market companies, which are companies having annual earnings, before interest, taxes, depreciation and amortization of between $5 million and $15 million, and/or revenues of between $10 million and $100 million. Its investments range in size from $5 million to $15 million. Its investment objective is to generate both current income and capital appreciation primarily by making direct investments in lower middle-market companies in the form of senior debt, unitranche, second lien, subordinated debt and, to a lesser extent, senior debt and minority equity investments. Its investment focus is to make loans to, and selected equity investments in, privately-held lower-middle-market companies.
