ENCINITAS, Calif., May 1 /PRNewswire-FirstCall/ -- At the annual meeting of shareholders on April 29, 2008, the shareholders of MACC Private Equities Inc. re-elected four current directors to MACC's Board of Directors for one-year terms: Michael Dunn, Benjamin Jiaravanon, Gordon Roth and Geoffrey Woolley. The shareholders also elected James W. Eiler, a recently appointed director, to a one-year term.
The shareholders also approved an Investment Advisory Agreement between MACC and Eudaimonia Asset Management, LLC. Eudaimonia, based in Encinitas, California, will serve as MACC's investment advisor and will manage all new portfolio investments made by MACC and generally provide all facilities, personnel and other means necessary for MACC to operate.
In connection with the Investment Advisory Agreement, the Board of Directors of MACC appointed officers of Eudaimonia Asset Management to serve in similar capacities as the executive officers of MACC. These officers are Travis Prentice, President and Chief Investment Officer of Eudaimonia, who will serve as President and CEO of MACC; Derek Gaertner, Vice President, Chief Operating Officer and Chief Compliance Officer of Eudaimonia, who will serve as the Chief Financial Officer and Chief Compliance Officer of MACC, and Montie L. Weisenberger, Vice President and Portfolio Manager of Eudaimonia, who will serve as the Treasurer and Secretary of MACC.
The shareholders also approved an Investment Subadvisory Agreement among MACC, Eudaimonia and InvestAmerica Investment Advisors, Inc., which has served as investment adviser and sub-advisor to MACC and its wholly-owned subsidiary, MorAmerica Capital Corporation, since 1995. InvestAmerica will serve as an investment sub-advisor and will continue to oversee MACC's existing portfolio of investments.
Eudaimonia's primary strategy will be to make direct equity investments via private placements in public companies that do not trade on major exchanges (i.e. OTCBB, Pink Sheets) and might not have the same access to capital as other larger companies. "We'll look to make private investments in promising companies that are poised to benefit from positive fundamental change, companies which need capital to grow and realize their vision," said Travis Prentice. "The PIPE market has gained significant traction over the past few years, and we feel this is an area of real opportunity. Our primary goals are to generate strong investment returns and maximize shareholder value, and in the short-term we will also look to increase investor awareness of MACC, and increase the capital base."
"We are very pleased the shareholders have seized this opportunity to move MACC in a new direction. Eudaimonia's new strategy represents a stronger opportunity for capital appreciation, an increased liquidity profile of its investments, and greater security-level transparency. In addition, MACC shareholders will now have access to an area of the market that had traditionally been unavailable to many investors," said Geoffrey Woolley.
As previously disclosed, effective April 30, 2008, MorAmerica Capital Corporation has been merged with MACC. As a result of the merger, MACC will now directly hold the portfolio of investments previously held by MorAmerica.
The shareholders also authorized MACC to conduct a rights offering. Under this authorization, MACC would issue rights to acquire any authorized shares of MACC's Common Stock as a means by which MACC may raise additional equity capital and increase its asset base.
The shareholders also ratified the appointment of KPMG LLP as independent auditors for MACC for the fiscal year ending September 30, 2008.
MACC is a business development company with a portfolio of investments in small businesses in the United States. MACC common stock is traded on The Nasdaq Capital Market under the symbol "MACC."
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "1995 Act"). Such statements are made in good faith by MACC pursuant to the safe-harbor provisions of the 1995 Act, and are identified as including terms such as "may," "will," "should," "expects," "anticipates," "estimates," "plans," or similar language. In connection with these safe-harbor provisions, MACC has identified in its Annual Report to Shareholders for the fiscal year ended September 30, 2007, important factors that could cause actual results to differ materially from those contained in any forward-looking statement made by or on behalf of MACC, including, without limitation, the high risk nature of MACC's portfolio investments, the effects of general economic conditions on MACC's portfolio companies and the ability to obtain future funding, any failure to achieve annual investment level objectives, changes in prevailing market interest rates, and contractions in the markets for corporate acquisitions and initial public offerings. MACC further cautions that such factors are not exhaustive or exclusive. MACC does not undertake to update any forward-looking statement which may be made from time to time by or on behalf of MACC.
MACC Private Equities Inc.
