Horizon Technology Finance Corporation (HRZN)

Horizon Technology Finance Announces Regular Monthly Distributions for July, August and September 2026 Totaling $0.18 per Share and Special Distributions for July, August and September 2026 Totaling $0.09 per ShareMay 5, 2026 4:20 PM
Business Wire Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon”) (the “Company”), an affiliate of Monroe Capital, announced today that its board of directors has declared regular monthly cash distributions of $0.06 per share, payable in each of July, August and September 2026, and, in accordance with the Company’s previously announced intent to make additional distributions with its undistributed net investment income, or “spillover” income, special cash distributions of $0.03 per share, payable in each of July, August and September 2026. The following tables show these distributions, payable as set forth in the tables below, total $0.27 per share. Since its 2010 initial public offering, Horizon has paid a total of $368 million in distributions to its shareholders. Regular Monthly Distributions Payable in Third Quarter 2026 Ex-Dividend Date Record Date Payment Date Amount per Share June 17, 2026 June 17, 2026 July 15, 2026 $0.06 July 16, 2026 July 16, 2026 August 14, 2026 $0.06 August 17, 2026 August 17, 2026 September 15, 2026 $0.06     Total: $0.18 Special Monthly Distributions Payable in Third Quarter 2026 Ex-Dividend Date Record Date Payment Date Amount per Share June 17, 2026 June 17, 2026 July 15, 2026 $0.03 July 16, 2026 July 16, 2026 August 14, 2026 $0.03 August 17, 2026 August 17, 2026 September 15, 2026 $0.03     Total: $0.09 The Company’s board of directors (“Board”) sets the level of distributions for each quarter based on its results of operations, spillover income and longer-term outlook, including expected operating results for the current fiscal year. When declaring distributions, Horizon’s Board reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year. Horizon maintains a “Dividend Reinvestment Plan” (“DRIP”) that provides for the reinvestment of distributions on behalf of its stockholders, unless a stockholder has elected to receive distributions in cash. As a result, if Horizon declares a distribution, its stockholders who have not “opted out” of the DRIP by the distribution record date will have their distribution automatically reinvested into additional shares of Horizon’s common stock. Horizon has the option to satisfy the share requirements of the DRIP through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Newly-issued shares will be valued based upon the final closing price of Horizon’s common stock on a specified valuation date for each distribution as determined by Horizon’s Board. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased by the DRIP plan administrator, before any associated brokerage or other costs, which are borne by Horizon. About Horizon Technology Finance Horizon Technology Finance Corporation (NASDAQ: HRZN), externally managed by Horizon Technology Finance Management LLC, an affiliate of Monroe Capital, is a leading specialty finance company that provides capital in the form of secured loans to venture capital and private equity-backed companies and publicly traded companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of Horizon is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located throughout the U.S. Monroe Capital is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, opportunistic, structured credit, real estate and equity. To learn more, please visit horizontechfinance.com. Forward-Looking Statements Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Horizon’s filings with the Securities and Exchange Commission. Horizon undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260505601971/en/ Investor Relations:
ICR
Garrett Edson
ir @ Media Relations:
ICR
Chris Gillick

Horizon Technology Finance to Announce First Quarter 2026 Financial ResultsApril 21, 2026 4:10 PM
Business Wire
Horizon Technology Finance Corporation (NASDAQ: HRZN) (“HRZN” or “Horizon”), an affiliate of Monroe Capital, announced today that it plans to release financial results for the first quarter ended March 31, 2026 on Tuesday, May 5, 2026, after the close of market trading.


The Company has scheduled a conference call to discuss the results on Wednesday, May 6, 2026, at 9:00 a.m. ET. The conference call will feature remarks by Mike Balkin, Chief Executive Officer, Paul Seitz, Senior Vice President and Chief Investment Officer, and Dan Trolio, Executive Vice President and Chief Financial Officer. To participate in the call, please dial (877) 407-9716 (domestic) or (201) 493-6779 (international). The conference ID is 13759343. Please dial into the call at least five minutes before the scheduled start time.


The conference call will also be available via a live listen-only webcast on the Company’s website, www.horizontechfinance.com. Please allow extra time prior to the call to visit the site and download any necessary software that may be needed to listen to the Internet broadcast.


An online archive of the webcast will be available on the Company's website for 30 days following the call.


About Horizon Technology Finance


Horizon Technology Finance Corporation (NASDAQ: HRZN), externally managed by Horizon Technology Finance Management LLC, an affiliate of Monroe Capital, is a leading specialty finance company that provides capital in the form of secured loans to venture capital and private equity-backed companies and publicly traded companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of Horizon is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located throughout the U.S. Monroe Capital is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, opportunistic, structured credit, real estate and equity. To learn more, please visit horizontechfinance.com.


Forward-Looking Statements


Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Horizon’s filings with the Securities and Exchange Commission. Horizon undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260421607002/en/
Investor Relations:

ICR

Garrett Edson

ir@horizontechfinance.com

(646) 200-8885
Media Relations:

ICR

Chris Gillick

HorizonPR@icrinc.com

(646) 677-1819


Original: Horizon Technology Finance to Announce First Quarter 2026 Financial Results

Horizon Technology Finance Corporation Closes Merger with Monroe Capital CorporationApril 14, 2026 4:05 PM
Business Wire
Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon” or the “Company”) announced today the closing of the previously announced merger of Monroe Capital Corporation (NASDAQ: MRCC) (“MRCC”) with and into Horizon, with Horizon remaining as the surviving company. The combined company, which remains externally managed by Horizon Technology Finance Management LLC (“HTFM”), will have approximately $471.7 million of net assets on a pro forma basis immediately following closing, including approximately $141.1 million in cash received in connection with the merger. As stated in the Company’s proxy statement, the Company intends to use such cash to repay a portion of its outstanding indebtedness and to make investments in accordance with its investment objective and strategies.


“We are excited to complete our merger with MRCC and launch a new chapter of the Horizon story,” said Mike Balkin, Chief Executive Officer of Horizon. “Strengthened by the added capital resources from the MRCC merger and the continued backing of Monroe Capital, a leading asset manager with approximately $24 billion in AUM, we believe we are well positioned to compete for and win a greater number of larger-sized originations, accelerating our growth and overall scale and increasing our risk-adjusted returns over time. By successfully executing on our growth strategy, we believe we will drive long-term value creation for our shareholders, while we continue to be a leading financial partner to the innovation economy.”


Ted Koenig, Chairman and CEO of Monroe Capital, added, “Horizon is an important and growing part of the Monroe Capital family. By combining MRCC and HRZN, we expect to deliver more efficient and effective capital solutions to the venture debt and small-cap public company growth market segments. Our plan is to materially grow the new Horizon and create long-term value for its shareholders. Our award-winning lower middle market private credit platform has been creating and delivering value-added capital solutions to our clients for over twenty years.”


In connection with the closing of the merger, Horizon will issue 20,370,693 shares of Horizon common stock in the aggregate, or 0.9402 shares of Horizon common stock for each share of MRCC common stock, to MRCC stockholders (and payment of cash in lieu of fractional shares). Former MRCC stockholders and legacy Horizon stockholders will own 29.86% and 70.14% of the combined company, respectively, immediately following the closing of the merger.


As previously announced by MRCC, applicable legacy MRCC stockholders will also receive a final cash distribution from MRCC, on or around April 17, 2026, of $0.60 for each share of MRCC common stock outstanding as of the record date on April 10, 2026, which amount comprises an aggregate of $13 million sourced from the net proceeds received by MRCC from Monroe Capital Income Plus Corporation (“MCIP”) in connection with MRCC’s sale of its investment assets to MCIP immediately prior to the closing of the merger.


Horizon Supplemental Distributions


In addition, as previously announced, Horizon’s Board of Directors (the “Board”) intends to use a portion of Horizon’s undistributed taxable earnings of $27.6 million as of December 31, 2025 to supplement Horizon’s regular monthly distributions to the combined company’s shareholders for its next two fiscal quarters following the closing of the merger (the “Horizon Supplemental Distributions”), commencing with the monthly distribution payable in July 2026 and subject to the Board’s declaration of the distributions. In considering whether to declare any Horizon Supplemental Distributions, the Board will consider, among other things, (1) Horizon’s ongoing compliance with asset coverage ratio requirements under the Investment Company Act of 1940, (2) Horizon’s compliance with applicable financial and other operating covenants under Horizon’s financing agreements, and (3) Horizon’s general investment performance and available liquidity, as well as general market conditions at the time.


Investment Management Agreement Fee Waiver


In connection with the closing of the merger, HTFM agreed to waive an aggregate amount of up to $4 million of base management fees and incentive fees over the first four full fiscal quarters following the closing of the merger (the “Fee Waiver”). The Fee Waiver will be made at a rate of up to $1 million per quarter commencing at the end of the quarter ending September 30, 2026 (the first full fiscal quarter following the closing). The Fee Waiver for each applicable fiscal quarter will not exceed the greater of (a) the total amount of base management and incentive fees earned by HTFM during such fiscal quarter and (b) $1 million.


Horizon Stock Repurchase Program


In connection with the closing of the merger, Horizon affirms its intent to utilize its previously authorized $10 million stock repurchase program to purchase shares of Horizon common stock on the open market or in privately negotiated purchases pursuant to Rule 10b-18 and other applicable provisions of the Securities Exchange Act of 1934, as amended, provided that such purchases, in the aggregate, do not exceed 2% of the shares outstanding at the time of purchase and such shares are purchased only when such shares are trading below 90% of Horizon's most recently disclosed net asset value per share. Horizon’s authorized stock repurchase program is scheduled to expire on June 30, 2026, unless extended by the Board.


Horizon Board of Directors


Upon the closing of the merger, (1) each of James Bottiglieri, Edward Mahoney, Robert Pomeroy, Elaine Sarsynski and Joseph Savage resigned from the Board and their respective Board committees, (2) the size of the Board was reduced to four directors and (3) Thomas Allison’s election to the Board became effective. Mr. Allison was previously elected to serve on the Board, subject to the closing of the merger, by Horizon’s stockholders at its special meeting of stockholders held on March 13, 2026.


Mr. Allison, who previously served as an independent director of MRCC, will serve as an independent Class I Director until the 2026 annual meeting of Horizon’s stockholders or until his successor is duly elected and qualified. Horizon expects that Mr. Allison will be appointed to serve on each standing committee of the Board.


Transaction Advisors


Oppenheimer & Co. Inc. served as financial advisor to the Special Committee of Horizon in connection with the merger. Blank Rome LLP acted as the legal counsel to the Special Committee of Horizon.


Houlihan Lokey Capital, Inc. served as financial advisor to the Special Committee of MRCC in connection with the transactions. Nelson Mullins Riley & Scarborough LLP acted as the legal counsel to the Special Committee of MRCC.


Dechert LLP served as legal counsel to Monroe Capital BDC Advisors, LLC and HTFM in connection with the transaction.


About Horizon Technology Finance Corporation


Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance company that provides secured loans to venture capital-backed companies in the technology, life-science, healthcare information & services, and sustainability industries. Horizon is externally managed by Horizon Technology Finance Management LLC, an affiliate of Monroe Capital LLC.


Forward Looking Statements


Some of the statements in this communication constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to future operating results and distribution projections of the Company, including with respect to expected timing or amount of the Horizon Supplemental Distributions; business prospects of the Company, and the prospects of its portfolio companies; the expected benefits of the merger such as improved operations, enhanced revenues and cash flow, growth potential, market profile and financial strength; the competitive ability and position of the Company following completion of the merger; and the impact of the investments that the Company expects to make. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions, although not all forward-looking statements include these words. The forward-looking statements contained in this communication involve risks and uncertainties. More information on the risks and other potential factors that could affect these forward-looking statements is included in the Registration Statement on Form N-14 (File No. 333-290114) filed with the Securities and Exchange Commission (the “SEC”) that contains a joint proxy statement of Horizon and MRCC and prospectus for Horizon. You should not place undue reliance on such forward-looking statements, which are based upon Company management’s current views and assumptions regarding future events and operating performance, and speak only as of the date any such statement is made.


Although the Company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that it may make directly to you or through reports that the Company in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260414670184/en/
Investor Relations:

ICR

Garrett Edson

ir@horizontechfinance.com

(646) 200-8885
Media Relations:

ICR

Chris Gillick

HorizonPR@icrinc.com

(646) 677-1819


Original: Horizon Technology Finance Corporation Closes Merger with Monroe Capital Corporation

Horizon Technology Finance and CR Financial Holdings Form New $100 Million Joint VentureMarch 19, 2026 6:00 AM
Business Wire
Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon”), an affiliate of Monroe Capital, announced today the formation of a new joint venture with CR Financial Holdings, Inc. (“CRFH”), the holding company for Roth Capital Partners, LLC (“Roth”). The joint venture will provide growth capital financing solutions to small- and micro-cap public companies based primarily in the U.S.


Horizon and CRFH will make initial capital commitments totaling $100 million. The joint venture intends to leverage its initial capital by entering into warehouse credit facilities from time to time. Governance and investment decisions will be made by a four-person board and a four-person investment committee, with Horizon and CRFH equally represented on each. The joint venture expects to be supported on larger investments by Monroe Capital, a leading private credit investment firm with approximately $24 billion in assets under management and over 500 individual portfolio companies as of January 1, 2026. The joint venture expands Horizon’s focus on providing capital in the form of secured loans to venture capital and private equity-backed companies and publicly traded companies.


Horizon brings more than two decades of experience as a leading provider of growth capital lending solutions, while CRFH, through its subsidiary Roth, a full-service investment bank, contributes established capital markets expertise and relationships across the public-company sector. Together, they form a partnership well suited to delivering growth-focused debt capital to small- and micro-cap public companies.


“We are excited to partner with CRFH on this new joint venture, which we believe will provide publicly traded, small- and micro-cap companies a compelling option for growth financing,” said Mike Balkin, Chief Executive Officer of Horizon Technology Finance Corporation. “The joint venture will target a multi-billion-dollar market opportunity that we believe is currently underserved. We will primarily focus on providing growth capital financing solutions in the $5-25 million range, with the ability to upsize as necessary, with the continued support and backing of Monroe Capital. Importantly, the joint venture is fully aligned with Horizon’s long-term strategy to expand our capacity to support innovative, high-growth companies, increase our scale, and drive long-term value for our shareholders.”


“Our new joint venture with Horizon provides us an excellent opportunity to expand our capabilities and offer additional capital solutions to publicly traded companies,” said Byron Roth, Chairman of CRFH. “We have a long history in this market, and we are thrilled to be partnering with the highly respected Horizon team. We expect our new joint venture will be an active player in growth financing for publicly traded companies.”


About Horizon Technology Finance


Horizon Technology Finance Corporation (NASDAQ: HRZN), externally managed by Horizon Technology Finance Management LLC, an affiliate of Monroe Capital, is a leading specialty finance company that provides capital in the form of secured loans to venture capital and private equity-backed companies and publicly traded companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of Horizon is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located throughout the U.S. Monroe Capital is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, opportunistic, structured credit, real estate and equity. To learn more, please visit horizontechfinance.com.


About CR Financial Holdings and Roth Capital Partners


CR Financial Holdings, Inc., is a private holding company and the majority owner of Roth Capital Partners, LLC. CRFH makes strategic investments in publicly traded and private companies, as well as private investment funds. Roth is a relationship-driven investment bank focused on serving growth companies and their investors. Roth’s full-service platform provides capital raising, high-impact equity research, macroeconomics, sales and trading, technical insights, derivatives strategies, M&A advisory, and corporate access. Headquartered in Newport Beach, California, Roth is a privately held, employee-owned organization and maintains offices throughout the U.S. For more information on Roth, please visit www.roth.com.


Forward-Looking Statements


Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Horizon’s filings with the Securities and Exchange Commission. Neither Horizon nor CRFH undertakes any duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260319397138/en/
Horizon Technology Finance Corporation


Investor Relations:

ICR

Garrett Edson

ir@horizontechfinance.com

(646) 200-8885


Media Relations:

ICR

Chris Gillick

HorizonPR@icrinc.com

(646) 677-1819


CRFH


Gerald Mars

Chief Financial Officer, CR Financial Holdings

gmars@roth.com

(949) 510 3466


Original: Horizon Technology Finance and CR Financial Holdings Form New $100 Million Joint Venture

Horizon Technology Finance Corporation Announces Intent to Supplement Regular Monthly Distributions for Combined Company Stockholders Following Merger With Monroe Capital CorporationMarch 10, 2026 9:15 AM
Business Wire
Horizon Technology Finance Corporation (NASDAQ: HRZN) (“HRZN”), an affiliate of Monroe Capital LLC, today announced its Board of Directors’ intent to supplement HRZN’s regular monthly distributions to HRZN stockholders following the closing of the pending merger (the “Merger”) between HRZN and Monroe Capital Corporation (“MRCC”). As previously announced, following the Merger, HRZN will be the surviving public entity and will continue to be managed by Horizon Technology Finance Management LLC (“HTFM”) and trade on the NASDAQ under the symbol “HRZN”.


To create near-term value for the post-Merger combined company stockholders, the HRZN Board intends to use HRZN’s current undistributed taxable earnings (i.e., spillover income) of $27.6 million as of December 31, 2025 to supplement HRZN’s regular monthly distributions for two quarters following the closing of the Merger (the “HRZN Supplemental Distributions”), subject to the closing of the Merger and the HRZN Board’s declaration of the distributions.


HRZN anticipates that the HRZN Supplemental Distributions for the first quarter post-closing will be in the range of at least $0.02 to $0.04 per share per month. In its consideration of declaration of any HRZN Supplemental Distributions, the HRZN Board will consider, among other things, (1) HRZN’s ongoing compliance with asset coverage ratio requirements under the Investment Company Act of 1940, (2) HRZN’s compliance with applicable financial and other operating covenants under HRZN’s financing agreements, and (3) HRZN’s general investment performance and available liquidity, as well as general market conditions at the time.


In addition, MRCC announced today its intent to increase the amount of its final special distribution payable to legacy MRCC stockholders of record as of a time prior to the closing of the Merger by $13.0 million ($0.61 per share) (the “Supplemental MRCC Distribution”), contingent upon MRCC stockholder approval of the Merger and related closing conditions. The Supplemental MRCC Distribution is expected to be paid to legacy MRCC stockholders in addition to MRCC’s planned pre-Merger closing distribution of its undistributed taxable earnings (the “Final MRCC Tax Distribution” and, together with the “Supplemental MRCC Distribution,” the “Pre-Merger MRCC Closing Distribution”), which totaled $2.9 million ($0.14 per share) as of December 31, 2025. The Pre-Merger MRCC Closing Distribution will be sourced from the net proceeds received by MRCC from its sale for cash of substantially all of its assets to Monroe Capital Income Plus Corporation (“MCIP”), the Monroe Capital platform's privately offered business development company, which will occur immediately prior to the Merger pending requisite stockholder approval and completion of other closing conditions.


Management Commentary


“We continue to be excited about the proposed merger between HRZN and MRCC,” said Michael P. Balkin, Chief Executive Officer of Horizon Technology Finance. “These value enhancements, which we believe demonstrate our commitment to completing this compelling transaction, were announced following discussions with each of the MRCC and HRZN Boards of Directors and their special committees."


Mr. Balkin continued, “We will work carefully and strategically to deploy the proceeds of the merger and our available leverage, investing thoughtfully and deliberately with the goal of creating meaningful long-term benefits for our shareholders, including the potential for higher earnings and greater portfolio diversification.”


HRZN Special Meeting of Stockholders


The HRZN special meeting is currently scheduled for March 13, 2026, at 2:30 p.m., ET. HRZN urges its stockholders to cast their votes by following the instructions outlined in the joint proxy statement/prospectus. Stockholders of HRZN can also vote by going to the following website: www.proxyvote.com, or by calling 1-800-690-6903 and providing the control number which is listed in the proxy card received.


Stockholders who have already voted do not need to recast their votes. Stockholders who have not already voted or wish to change their vote are encouraged to do so using the instructions provided in their voting instruction form or proxy card.


HRZN investors with questions about the transactions or how to vote their shares may contact HRZN’s proxy solicitor, Broadridge, at 1-833-201-5231. Additional information is available at www.proxyvote.com.


About Horizon Technology Finance Corporation


Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance company that provides secured loans to venture capital-backed companies in the technology, life-science, healthcare information & services, and sustainability industries. HRZN is externally managed by Horizon Technology Finance Management LLC, an affiliate of Monroe Capital LLC.


Forward-Looking Statements


Some of the statements in this communication constitute forward-looking statements because they relate to future events, future performance or financial condition of MRCC or HRZN or the proposed sale of assets by MRCC to MCIP and the proposed merger of MRCC with and into HRZN. All statements, other than historical facts, including but not limited to statements regarding the expected timing of the closing of the proposed transactions; the expected timing or amount of payments of dividends or distributions by MRCC and/or HRZN, including all or any portion of the Pre-Merger MRCC Closing Distribution or the HRZN Supplemental Distributions; the ability of the parties to complete the proposed transactions considering the various closing conditions; the expected benefits of the proposed transactions such as improved operations, enhanced revenues and cash flow, growth potential, market profile and financial strength; the competitive ability and position of the surviving companies following completion of the proposed transactions; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual events and results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Certain factors could cause actual results and conditions to differ materially from those projected, including, without limitation, the uncertainties associated with (i) the timing or likelihood of the proposed transactions closing; (ii) the expected synergies and savings associated with the proposed transactions; (iii) the ability to realize the anticipated benefits of the proposed transactions; (iv) the possibility that one or more of the various closing conditions to the transactions may not be satisfied or waived on a timely basis or otherwise, including risks that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the proposed transactions, may require conditions, limitations or restrictions in connection with such approvals or that the required approvals by the shareholders of MRCC and/or HRZN may not be obtained; (v) the possibility that competing offers or acquisition proposals will be made; (vi) risks related to diverting management's attention from ongoing business operations; (vii) the combined company’s plans, expectations, objectives and intentions, as a result of the transactions; (viii) the future operating results and net investment income, net asset value or distribution projections of MRCC, HRZN or, following the closing of the transactions, the combined company; (ix) the ability of HTFM to implement its future plans with respect to the combined company; (x) the expected financings and investments and additional leverage that MRCC, HRZN or, following the closing of the transactions, the combined company may seek to incur in the future; (xi) the adequacy of the cash resources and working capital of MRCC, HRZN or, following the closing of the transactions, the combined company; (xii) the risk that shareholder litigation in connection with the proposed transactions may result in significant costs of defense and liability; (xiii) changes in the economy, financial markets and political environment, including the impacts of inflation and interest rates; (xiv) risks associated with possible disruption in the operations of MRCC and/or HRZN or the economy generally due to terrorism, war or other geopolitical conflict, natural disasters, tariffs or public health crises and epidemics; (xv) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (xvi) conditions in MRCC’s and HRZN’s operating areas, particularly with respect to business development companies or regulated investment companies; and (xvii) other considerations that may be disclosed from time to time in MRCC’s and HRZN's publicly disseminated documents and filings. There is no assurance that the market price of HRZN’s shares, either absolutely or relative to net asset value, will increase as a result of any share repurchases, to the extent effectuated, or that any repurchase plan will enhance shareholder value over the long term. HRZN and MRCC have based the forward-looking statements included in this communication on information available to them on the date hereof, and neither HRZN, MRCC nor their affiliates assume any obligation to update any such forward-looking statements. Although HRZN and MRCC undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that HRZN and MRCC may make directly to you or through reports that they have filed with the Securities and Exchange Commission (the “SEC”), or in the future may file with the SEC, including the Joint Proxy Statement and the Registration Statement (each as defined below), annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.


Additional Information and Where to Find It


This communication relates to the proposed asset sale between MRCC and MCIP and the proposed merger of HRZN and MRCC, as well as certain related matters (the “Proposals”). In connection with the Proposals, HRZN has filed with the SEC a registration statement on Form N-14 (File No. 333-290114) (the “Registration Statement”) that contains a combined joint proxy statement for HRZN and MRCC and a prospectus of HRZN (the “Joint Proxy Statement”), and HRZN and MRCC have mailed the Joint Proxy Statement to their respective shareholders. The Joint Proxy Statement and the Registration Statement each contain important information about HRZN, MRCC, and the Proposals. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. SHAREHOLDERS OF HRZN AND MRCC ARE URGED TO READ THE JOINT PROXY STATEMENT, THE REGISTRATION STATEMENT, AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT HRZN, MRCC, AND THE PROPOSALS.


Investors and security holders will be able to obtain the documents filed with the SEC free of charge at the SEC’s website, http://www.sec.gov or, for documents filed by HRZN, from HRZN’s website at https://ir.horizontechfinance.com/ and, for documents filed by MRCC, from MRCC’s website at https://ir.monroebdc.com/. No information contained on either of HRZN’s or MRCC’s website is incorporated by reference in this communication and you should not consider that information to be part of this communication.


Participants in the Solicitation


HRZN, its directors, certain of its executive officers and certain employees and officers of HTFM or Monroe Capital LLC (“Monroe Capital”) and their affiliates may be deemed to be participants in the solicitation of proxies from the shareholders of MRCC and HRZN in respect of the Proposals. Information about the directors and executive officers of HRZN is set forth in its definitive proxy statement on Schedule 14A for its 2025 Annual Meeting of Stockholders, which was filed with the SEC on April 17, 2025 (as modified by the amendment to the definitive proxy statement on Schedule 14A for its 2025 Annual Meeting of Stockholders filed with the SEC on May 15, 2025, the “HRZN Proxy Statement”), and in the Joint Proxy Statement, each as modified or supplemented by any Form 3 or Form 4 filed with the SEC since the date of the Joint Proxy Statement or HRZN Proxy Statement, as applicable. MRCC, its directors, certain of its executive officers and certain employees and officers of Monroe Capital BDC Advisors, LLC or Monroe Capital and their affiliates may be deemed to be participants in the solicitation of proxies from the shareholders of MRCC and HRZN in respect of the Proposals. Information about the directors and executive officers of MRCC is set forth in its proxy statement for its 2025 Annual Meeting of Stockholders (the “MRCC Proxy Statement”), which was filed with the SEC on April 21, 2025, and in the Joint Proxy Statement, each as modified or supplemented by any Form 3 or Form 4 filed with the SEC since the date of the Joint Proxy Statement or MRCC Proxy Statement, as applicable. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the HRZN and MRCC shareholders in respect of the proposed transactions and related shareholder approvals is contained in the Registration Statement, including the Joint Proxy Statement included therein, and will be contained in other relevant materials when such documents become available. These documents may be obtained free of charge from the sources indicated above.


No Offer or Solicitation


This document is not, and under no circumstances is it to be construed as, a prospectus or an advertisement, and the communication of this document is not, and under no circumstances is it to be construed as, an offer to sell or a solicitation of an offer to purchase any securities in HRZN or MRCC or in any fund or other investment vehicle managed by Monroe Capital or any of its affiliates.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260310301687/en/
Horizon Technology Finance Corporation




Investor Relations:

ICR

Garrett Edson

ir@horizontechfinance.com

(646) 200-8885




Media Relations:

ICR

Chris Gillick

HorizonPR@icrinc.com

(646) 677-1819


Original: Horizon Technology Finance Corporation Announces Intent to Supplement Regular Monthly Distributions for Combined Company Stockholders Following Merger With Monroe Capital Corporation

Horizon Technology Finance Announces Fourth Quarter and Full Year 2025 Financial ResultsMarch 3, 2026 4:15 PM
Business Wire
- Fourth Quarter 2025 Net Investment Income per Share of $0.18; NAV per Share of $6.98 -


- Debt Portfolio Yield of 14.3% -


- HRZN Ends Year with Committed Backlog of $154 Million -


Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon” or the “Company”), an affiliate of Monroe Capital, today announced its financial results for the fourth quarter and full year ended December 31, 2025.


Fourth Quarter 2025 and Recent Highlights



Net investment income (“NII”) of $8.3 million, or $0.18 per basic share, compared to $10.4 million, or $0.27 per basic share for the prior-year period



Total investment portfolio of $647.2 million as of December 31, 2025



Net asset value of $318.5 million, or $6.98 per share as of December 31, 2025



Annualized portfolio yield on debt investments of 14.3% for the quarter



Funded nine loans totaling $102.5 million



Experienced liquidity events from three portfolio companies



Cash of $142.7 million and credit facility capacity of $329.0 million as of December 31, 2025



Held portfolio of warrant and equity positions in 89 companies as of December 31, 2025



Undistributed spillover income of $0.65 per share as of December 31, 2025



Subsequent to quarter end, declared distributions of $0.06 per share payable in April, May and June 2026



Full Year 2025 Highlights



Net investment income of $44.4 million, or $1.05 per share for 2025, compared to $47.8 million, or $1.32 per share for the prior year



Achieved annual portfolio yield on debt investments of 15.8% for 2025



Horizon funded 28 loans totaling $277.5 million; experienced liquidity events from 23 portfolio companies



“We returned to portfolio growth in the fourth quarter via a number of high-quality new venture debt loans while we made progress toward our planned merger with Monroe Capital Corporation (‘MRCC’),” said Mike Balkin, Chief Executive Officer of Horizon. “NII was impacted in the quarter by lower prepayment activity, while NAV per share was modestly lower due to our distributions paid in the fourth quarter exceeding our NII. Our Board declared a monthly distribution of $0.06 per share for each of April, May and June, which we believe aligns our distribution level with our anticipated NII and operating results for 2026, taking into account the expected impact of the anticipated merger with MRCC.”


“In terms of our portfolio, we were pleased to increase our committed backlog during the quarter, which we believe sets a foundation to lead to steady portfolio growth in 2026,” added Mr. Balkin. “As we move ahead, we remain excited to complete the merger with MRCC, which will provide us significant capital to invest and, along with our active relationship with Monroe Capital, will better position us to win larger venture lending transactions. This will allow us to enhance our NII and NAV over time, which will ultimately create long-term value for our shareholders.”


Fourth Quarter 2025 Operating Results


Total investment income for the quarter ended December 31, 2025 was $20.7 million, compared to $23.5 million for the quarter ended December 31, 2024, primarily due to lower interest income on debt investments from a smaller debt investment portfolio.


The Company’s dollar-weighted annualized yield on average debt investments for the quarter ended December 31, 2025 and 2024 was 14.3% and 14.9%, respectively. The Company calculates the dollar-weighted annualized yield on average debt investments for any period measured as (1) total investment income (excluding dividend income) during the period divided by (2) the average of the fair value of debt investments outstanding on (a) the last day of the calendar month immediately preceding the first day of the period and (b) the last day of each calendar month during the period. The dollar-weighted annualized yield on average debt investments is higher than what investors will realize because it does not reflect expenses or any sales load paid by investors.


Total expenses for the quarter ended December 31, 2025 were $12.5 million, compared to $12.8 million for the quarter ended December 31, 2024. The decrease was primarily due to a $0.2 million decrease in interest expense and a $0.2 million decrease in base management fee due to a lower average weighted size of the portfolio in the quarter.


Net investment income for the quarter ended December 31, 2025 was $8.3 million, or $0.18 per basic share, compared to $10.4 million, or $0.27 per basic share, for the quarter ended December 31, 2024.


For the quarter ended December 31, 2025, net realized loss on investments was $23.3 million, or $0.52 per basic share, compared to a net realized loss on investments of $3.2 million, or $0.08 per basic share, for the quarter ended December 31, 2024. For the quarter ended December 31, 2025, net realized loss on extinguishment of debt was $0.8 million, or $0.02 per basic share.


For the quarter ended December 31, 2025, net unrealized appreciation on investments was $24.7 million, or $0.55 per basic share, compared to net unrealized depreciation on investments of $19.6 million, or $0.51 per basic share, for the prior-year period.


Full Year 2025 Operating Results


Total investment income for the year ended December 31, 2025 was $96.0 million, compared to $99.9 million for the year ended December 31, 2024.


Horizon’s dollar-weighted annualized yield on average debt investments for the year ended December 31, 2025 and 2024 was 15.8% and 15.6%, respectively.


For the full year ended December 31, 2025, net investment income was $44.4 million, or $1.05 per basic share, compared to net investment income of $47.8 million, or $1.32 per basic share, in the prior year.


For the full year ended December 31, 2025, net realized loss on investments was $55.1 million, or $1.30 per basic share, compared to net realized loss on investments of $34.6 million, or $0.96 per basic share, for the full year ended December 31, 2024. For the full year ended December 31, 2025, net realized loss on extinguishment of debt was $2.8 million, or $0.07 per basic share.


For the full year ended December 31, 2025, net unrealized appreciation on investments was $10.9 million, or $0.26 per basic share, compared to net unrealized depreciation on investments of $18.8 million, or $0.52 per basic share, for the full year ended December 31, 2024.


Portfolio Summary and Investment Activity


As of December 31, 2025, the Company’s debt portfolio consisted of 38 secured loans with an aggregate fair value of $596.0 million. In addition, the Company’s total warrant, equity and other investments in 97 portfolio companies had an aggregate fair value of $51.2 million. Total portfolio investment activity for the three months and full year ended December 31, 2025 and 2024 was as follows:




($ in thousands)






For the Three Months Ended




December 31,






For the Year Ended




December 31,








 






 






2025






 






 






2024






 






 






2025






 






 






2024






 








Beginning portfolio






$






603,514






 






$






684,000






 






$






697,891






 






$






709,085






 








 






 






 






 






 








New debt, equity and warrant investments






 






102,514






 






 






69,273






 






 






302,569






 






 






210,024






 








 






 






 






 






 








Less refinanced debt balances






 






(32,500






)






 






(8,120






)






 






(78,750






)






 






(27,660






)








 






 






 






 






 








Net new debt, equity and warrant investments






 






70,014






 






 






61,153






 






 






223,819






 






 






182,364






 








 






 






 






 






 








Principal payments received on investments






 






(12,787






)






 






(12,191






)






 






(54,079






)






 






(46,996






)








 






 






 






 






 








Early pay-offs and principal paydowns






 






(17,063






)






 






(13,721






)






 






(180,375






)






 






(99,364






)








 






 






 






 






 








Payment-in-kind (“PIK”) interest on investments






 






1,157






 






 






1,145






 






 






2,349






 






 






3,261






 








 






 






 






 






 








Accretion of debt investment fees






 






1,045






 






 






1,372






 






 






5,532






 






 






5,842






 








 






 






 






 






 








New debt investment fees






 






(1,200






)






 






(829






)






 






(2,804






)






 






(2,918






)








 






 






 






 






 








Warrants and equity received in settlement of fee income






 






1,917






 






 






—






 






 






5,197






 






 






359






 








 






 






 






 






 








Proceeds from sale of investments






 






(714






)






 






(145






)






 






(6,031






)






 






(302






)








 






 






 






 






 








Net realized loss on investments






 






(23,294






)






 






(3,209






)






 






(55,114






)






 






(34,631






)








 






 






 






 






 








Net unrealized appreciation (depreciation) on investments






 






24,655






 






 






(19,649






)






 






10,859






 






 






(18,785






)








 






 






 






 






 








Other






 






—






 






 






(35






)






 






—






 






 






(24






)








 






 






 






 






 








Ending portfolio






$






647,244






 






$






697,891






 






$






647,244






 






$






697,891






 







Portfolio Asset Quality


The following table shows the classification of Horizon’s loan portfolio at fair value by internal credit rating as of December 31, 2025, September 30, 2025 and December 31, 2024:




($ in thousands)






December 31, 2025






 






 




September 30, 2025






 






 




December 31, 2024








 






Number of Investments






Debt Investments at Fair Value






Percentage of Debt Investments






 






Number of Investments






Debt Investments at Fair Value






Percentage of Debt Investments






 






Number of Investments






Debt Investments at Fair Value






Percentage of Debt Investments








Credit Rating






 






 






 






 






 






 






 






 






 






 






 








4






5






$






72,213






12.1%






 






5






$






67,965






12.1%






 






11






$






159,944






25.1%








3






25






 






445,790






74.8%






 






26






 






420,823






75.2%






 






30






 






419,621






65.7%








2






4






 






53,503






9.0%






 






4






 






42,079






7.5%






 






7






 






48,760






7.6%








1






4






 






24,519






4.1%






 






4






 






29,323






5.2%






 






4






 






10,454






1.6%








Total






38






$






596,025






100.0%






 






39






$






560,190






100.0%






 






52






$






638,779






100.0%







As of December 31, 2025, September 30, 2025 and December 31, 2024, Horizon’s loan portfolio had weighted average credit ratings of 2.9, 2.9 and 3.1, respectively, with 4 being the highest credit quality rating and 3 being the rating for a standard level of risk. A rating of 2 represents an increased level of risk and, while no loss is currently anticipated for a 2-rated loan, there is potential for future loss of principal. A rating of 1 represents deteriorating credit quality and high degree of risk of loss of principal.


As of December 31, 2025, there were four debt investments with an internal credit rating of 1, with an aggregate cost of $33.8 million and an aggregate fair value of $24.5 million. As of September 30, 2025, there were four debt investments with an internal credit rating of 1, with an aggregate cost of $61.3 million and an aggregate fair value of $29.3 million. As of December 31, 2024, there were four debt investments with an internal credit rating of 1, with an aggregate cost of $44.8 million and an aggregate fair value of $10.5 million.


Liquidity and Capital Resources


As of December 31, 2025, the Company had $189.2 million in available liquidity, consisting of $142.7 million in cash and money market funds, and $46.5 million in funds available under existing credit facility commitments.


As of December 31, 2025, there was no outstanding principal balance under the $150.0 million revolving credit facility (“Key Facility”). The Key Facility allows for an increase in the total loan commitment up to an aggregate commitment of $300.0 million. There can be no assurance that any additional lenders will make any commitments under the Key Facility.


As of December 31, 2025, there was $181.0 million in outstanding principal balance under the $250 million senior secured debt facility with a large U.S.-based insurance company at an interest rate of 6.57%.


Additionally, as of December 31, 2025, there was $90.0 million in outstanding principal balance under the $200 million senior secured credit facility with a large U.S.-based insurance company at an interest rate of 7.21%.


On October 17, 2024, the Company entered into a note purchase agreement, by and among the Company, and each purchaser named therein, in connection with the issuance and sale of $20.0 million aggregate principal of the Company’s 7.125% convertible notes due 2031 (the “2031 Convertible Notes”). As of December 31, 2025, the aggregate outstanding principal balance of the 2031 Convertible Notes was $2.8 million.


On September 4, 2025, the Company entered into a note purchase agreement, by and among the Company, and each purchaser named therein, in connection with the issuance and sale of $40.0 million aggregate principal of the Company’s 5.50% convertible notes due 2030 (the “2030 Convertible Notes”). During the quarter ended December 31, 2025, the holders of a portion of the 2030 Convertible Notes converted $8.5 million in outstanding principal of the 2030 Convertible Notes plus accrued but unpaid interest on such outstanding principal as of the conversion date into 1,197,288 shares of common stock at a weighted average conversion price of $7.11, together with cash in lieu of fractional shares, in accordance with noteholder conversion notice. As of December 31, 2025, the aggregate outstanding principal balance of the 2030 Convertible Notes was $31.5 million.


As of December 31, 2025, the Company’s net debt to equity leverage ratio was 105%, below the Company’s 120% targeted leverage. The asset coverage ratio for borrowed amounts was 167%.


Liquidity Events


During the quarter ended December 31, 2025, Horizon experienced liquidity events from three portfolio companies. Liquidity events for Horizon may consist of the sale of warrants or equity in portfolio companies, loan prepayments, sale of owned assets or receipt of success fees.


In December, with the proceeds of a new loan from HRZN, a portfolio company paid its outstanding principal balance of $17.5 million on its venture loan, plus interest and end-of-term payment. HRZN continues to hold warrants in the company.


In December, with the proceeds of a new loan from HRZN, a portfolio company paid its outstanding principal balance of $15.0 million on its venture loan, plus interest and end-of-term payment. HRZN continues to hold equity in the company.


In December, as a result of an acquisition, a portfolio company paid its outstanding principal balance of $10.0 million on its venture loan, plus interest, end-of-term payment, prepayment fee and proceeds in connection from the redemption of warrants.


Net Asset Value


At December 31, 2025, the Company’s net assets were $318.5 million, or $6.98 per share, compared to $336.2 million, or $8.43 per share, as of December 31, 2024.


For the quarter ended December 31, 2025, net increase in net assets resulting from operations was $8.8 million, or $0.20 per basic share, compared to a net decrease in net assets resulting from operations of $12.4 million, or ($0.32) per basic share, for the quarter ended December 31, 2024.


Stock Repurchase Program


During the quarter ended December 31, 2025, the Company did not repurchase any shares of its common stock. From the inception of the stock repurchase program through December 31, 2025, the Company has repurchased 167,465 shares of its common stock at an average price of $11.22 on the open market at a total cost of $1.9 million.


Recent Developments


On January 12, 2026, the Company funded a $30.0 million debt investment to a new portfolio company, Pelthos Therapeutics, Inc.


On January 20, 2026, the Company funded a $20.0 million debt investment to a new portfolio company, Ossio, Inc.


Between January 7 and February 13, 2026, the holders of a portion of the 2030 Convertible Notes converted $15.1 million in outstanding principal of the 2030 Convertible Notes plus accrued but unpaid interest on such outstanding principal as of the conversion date into 2,118,250 shares of common stock at a conversion price of $7.12 per share, together with cash in lieu of fractional shares.


On January 16, 2026, the Company distributed the investment held by HIMV LLC to Horizon Technology Finance Corporation. On January 27, 2026, the Company dissolved HIMV LLC.


On January 27, 2026, the Company borrowed $20.0 million on the Key Facility.


On January 28, 2026, the Company redeemed the outstanding principal balance of its 4.875% Notes due 2026 (the “2026 Notes”) plus accrued interest. The Company accelerated $0.1 million of unamortized debt issuance costs related to the 2026 Notes.


On February 6, 2026, the Company amended its Key Facility, to amend certain provisions regarding eligibility of debt investments and concentration limits.


Monthly Distributions Declared in First Quarter 2026


On February 27, 2026, the Company’s Board declared monthly distributions of $0.06 per share payable in each of April, May and June 2026. The following tables show these monthly distributions, which total $0.18 per share:


Monthly Distributions




Ex-Dividend Date






Record Date






Payment Date






Amount per Share








March 16, 2026






March 16, 2026






April 15, 2026






$0.06








April 16, 2026






April 16, 2026






May 15, 2026






$0.06








May 18, 2026






May 18, 2026






June 16, 2026






$0.06








 






 






Total:






$0.18







After paying distributions of $1.32 per share deemed paid for tax purposes in 2025, declaring on October 22, 2025 a distribution of $0.11 per share payable January 15, 2026, and taxable earnings of $1.07 per share in 2025, the Company’s undistributed spillover income as of December 31, 2025 was $0.65 per share. Spillover income includes any ordinary income and net capital gains from the preceding tax years that were not distributed during such tax years.


Horizon’s Board sets the level of distributions for each quarter based on its results of operations, spillover income and longer-term outlook, including expected operating results for the current fiscal year, taking into account the expected impact of the Company’s anticipated merger with Monroe Capital Corporation. When declaring distributions, Horizon’s board of directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.


Conference Call


The Company will host a conference call on Wednesday, March 4, 2026 at 9:00 a.m. ET to discuss its latest corporate developments and financial results. To participate in the call, please dial (877) 407-9716 (domestic) or (201) 493-6779 (international). The access code for all callers is 13758135. The Company recommends joining the call at least 5 minutes in advance. In addition, a live webcast will be available on the Company’s website at www.horizontechfinance.com.


A webcast replay will be available on the Company’s website for 30 days following the call.


About Horizon Technology Finance


Horizon Technology Finance Corporation (NASDAQ: HRZN), externally managed by Horizon Technology Finance Management LLC, an affiliate of Monroe Capital, is a leading specialty finance company that provides capital in the form of secured loans to venture capital and private equity-backed companies and publicly traded companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of Horizon is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located throughout the U.S. Monroe Capital is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, opportunistic, structured credit, real estate and equity. To learn more, please visit horizontechfinance.com.


Forward-Looking Statements


Some of the statements in this communication constitute forward-looking statements because they relate to future events, future performance or financial condition of Monroe Capital Corporation (“MRCC”) or Horizon Technology Finance Corporation (“HRZN”) or the proposed sale of assets by MRCC to Monroe Capital Income Plus Corporation (“MCIP”) and the proposed merger of MRCC with and into HRZN. All statements, other than historical facts, including but not limited to statements regarding the expected timing of the closing of the proposed transactions; the ability of the parties to complete the proposed transactions considering the various closing conditions; the expected benefits of the proposed transactions such as improved operations, enhanced revenues and cash flow, growth potential, market profile and financial strength; the competitive ability and position of the surviving companies following completion of the proposed transactions; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual events and results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Certain factors could cause actual results and conditions to differ materially from those projected, including, without limitation, the uncertainties associated with (i) the timing or likelihood of the proposed transactions closing; (ii) the expected synergies and savings associated with the proposed transactions; (iii) the ability to realize the anticipated benefits of the proposed transactions; (iv) the possibility that one or more of the various closing conditions to the transactions may not be satisfied or waived on a timely basis or otherwise, including risks that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the proposed transactions, may require conditions, limitations or restrictions in connection with such approvals or that the required approvals by the shareholders of MRCC and/or HRZN may not be obtained; (v) the possibility that competing offers or acquisition proposals will be made; (vi) risks related to diverting management's attention from ongoing business operations; (vii) the combined company’s plans, expectations, objectives and intentions, as a result of the transactions; (viii) the future operating results and net investment income or distribution projections of MRCC, HRZN or, following the closing of the transactions, the combined company; (ix) the ability of Horizon Technology Finance Management LLC (“HTFM”) to implement its future plans with respect to the combined company; (x) the expected financings and investments and additional leverage that MRCC, HRZN or, following the closing of the transactions, the combined company may seek to incur in the future; (xi) the adequacy of the cash resources and working capital of MRCC, HRZN or, following the closing of the transactions, the combined company; (xii) the risk that shareholder litigation in connection with the proposed transactions may result in significant costs of defense and liability; (xiii) changes in the economy, financial markets and political environment, including the impacts of inflation and interest rates; (xiv) risks associated with possible disruption in the operations of MRCC and/or HRZN or the economy generally due to terrorism, war or other geopolitical conflict, natural disasters, tariffs or public health crises and epidemics; (xv) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (xvi) conditions in MRCC’s and HRZN’s operating areas, particularly with respect to business development companies or regulated investment companies; and (xvii) other considerations that may be disclosed from time to time in MRCC’s and HRZN's publicly disseminated documents and filings. There is no assurance that the market price of HRZN’s shares, either absolutely or relative to net asset value, will increase as a result of any share repurchases, to the extent effectuated, or that any repurchase plan will enhance shareholder value over the long term. HRZN and MRCC have based the forward-looking statements included in this communication on information available to it on the date hereof, and neither HRZN, MRCC nor their affiliates assume any obligation to update any such forward-looking statements. Although HRZN and MRCC undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that HRZN and MRCC may make directly to you or through reports that they have filed with the Securities and Exchange Commission (the “SEC”), or in the future may file with the SEC, including the Joint Proxy Statement and the Registration Statement (each as defined below), annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.


Additional Information and Where to Find It


This communication relates to the proposed asset sale between MRCC and MCIP and the proposed merger of HRZN and MRCC, as well as certain related matters (the “Proposals”). In connection with the Proposals, HRZN has filed with the SEC a registration statement on Form N-14 (File No. 333-290114) (the “Registration Statement”) that contains a combined joint proxy statement for HRZN and MRCC and a prospectus of HRZN (the “Joint Proxy Statement”), and HRZN and MRCC have mailed the Joint Proxy Statement to their respective shareholders. The Joint Proxy Statement and the Registration Statement each contain important information about HRZN, MRCC, and the Proposals. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. SHAREHOLDERS OF HRZN AND MRCC ARE URGED TO READ THE JOINT PROXY STATEMENT, THE REGISTRATION STATEMENT, AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT HRZN, MRCC, AND THE PROPOSALS.


Investors and security holders will be able to obtain the documents filed with the SEC free of charge at the SEC’s website, http://www.sec.gov or, for documents filed by HRZN, from HRZN’s website at https://ir.horizontechfinance.com/ and, for documents filed by MRCC, from MRCC’s website at https://ir.monroebdc.com/. No information contained on either of HRZN’s or MRCC’s website is incorporated by reference in this communication and you should not consider that information to be part of this communication.


Participants in the Solicitation


HRZN, its directors, certain of its executive officers and certain employees and officers of HTFM or Monroe Capital LLC (“Monroe Capital”) and their affiliates may be deemed to be participants in the solicitation of proxies from the shareholders of MRCC and HRZN in respect of the Proposals. Information about the directors and executive officers of HRZN is set forth in its definitive proxy statement on Schedule 14A for its 2025 Annual Meeting of Stockholders, which was filed with the SEC on April 17, 2025 (as modified by the amendment to the definitive proxy statement on Schedule 14A for its 2025 Annual Meeting of Stockholders filed with the SEC on May 15, 2025, the “HRZN Proxy Statement”), and in the Joint Proxy Statement, each as modified or supplemented by any Form 3 or Form 4 filed with the SEC since the date of the Joint Proxy Statement or HRZN Proxy Statement, as applicable. MRCC, its directors, certain of its executive officers and certain employees and officers of Monroe Capital BDC Advisors, LLC or Monroe Capital and their affiliates may be deemed to be participants in the solicitation of proxies from the shareholders of MRCC and HRZN in respect of the Proposals. Information about the directors and executive officers of MRCC is set forth in its proxy statement for its 2025 Annual Meeting of Stockholders (the “MRCC Proxy Statement”), which was filed with the SEC on April 21, 2025, and in the Joint Proxy Statement, each as modified or supplemented by any Form 3 or Form 4 filed with the SEC since the date of the Joint Proxy Statement or MRCC Proxy Statement, as applicable. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the HRZN and MRCC shareholders in respect of the proposed transactions and related shareholder approvals is contained in the Registration Statement, including the Joint Proxy Statement included therein, and will be contained in other relevant materials when such documents become available. These documents may be obtained free of charge from the sources indicated above.


No Offer or Solicitation


This document is not, and under no circumstances is it to be construed as, a prospectus or an advertisement, and the communication of this document is not, and under no circumstances is it to be construed as, an offer to sell or a solicitation of an offer to purchase any securities in HRZN or MRCC or in any fund or other investment vehicle managed by Monroe Capital or any of its affiliates.









 



Horizon Technology Finance Corporation and Subsidiaries




Consolidated Statements of Assets and Liabilities




(Dollars in thousands, except share and per share data)













 





December 31,






 






 






December 31,





 


Assets


2025






 






 






2024





 



Non-affiliate investments at fair value (cost of $616,236 and $694,503, respectively)






$






584,100






 






$






657,765






 








Non-controlled affiliate investments at fair value (cost of $89,033 and $27,491, respectively)






 






63,144






 






 






8,307






 








Controlled affiliate investments at fair value (cost of $0 and $44,780, respectively)






 






—






 






 






31,819






 








Total investments at fair value (cost of $705,269 and $766,774, respectively)






 






647,244






 






 






697,891






 








Cash






 






105,519






 






 






70,264






 








Investments in money market funds






 






34,711






 






 






27,266






 








Restricted investments in money market funds






 






2,463






 






 






3,338






 








Interest receivable






 






12,086






 






 






16,559






 








Other assets






 






9,081







 






6,515






 








Total assets






$






811,104







$






821,833






 








 






 






 






 






 








Liabilities






 






 






 






 








Borrowings






$






473,027






 






$






467,904






 








Distributions payable






 






15,053






 






 






13,159






 








Base management fee payable






 






975






 






 






1,045






 








Other accrued expenses






 






3,547






 






 






3,542






 








Total liabilities






 






492,602






 






 






485,650






 








 






 






 






 






 








Commitments and contingencies






 






 






 






 








 






 






 






 






 








Net assets






 






 






 






 








Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of December 31, 2025 and 2024






 






—






 






 






—






 








Common stock, par value $0.001 per share, 100,000,000 shares authorized, 45,781,280 and 40,043,312 shares issued and 45,613,815 and 39,875,847 shares outstanding as of December 31, 2025 and 2024, respectively






 






51






 






 






44






 








Paid-in capital in excess of par






 






559,355






 






 






518,200






 








Distributable loss






 






(240,904






)






 






(182,061






)








Total net assets






 






318,502






 






 






336,183






 








Total liabilities and net assets






$






811,104






 






$






821,833






 








Net asset value per common share






$






6.98






 






$






8.43






 
















 



Horizon Technology Finance Corporation and Subsidiaries




Consolidated Statements of Operations




(Dollars in thousands, except share and per share data)















 




For the Three Months Ended




December 31,






 






For the Year Ended




December 31,





 




 





 




2025






 






2024






 






2025






 






2024





 



Investment income






 






 






 






 






 






 






 






 








From non-affiliate investments:






 






 






 






 






 






 






 






 








Interest income






$






18,528






 






$






22,039






 






$






87,817






 






$






93,588






 








PIK interest






 






335






 






 






76






 






 






952






 






 






1,630






 








Fee income






 






553






 






 






287






 






 






5,555






 






 






2,948






 








From non-controlled affiliate investments:






 






 






 






 






 






 






 






 








PIK interest






 






822






 






 






—






 






 






1,189






 






 






—






 








Interest income






 






427






 






 






—






 






 






522






 






 






—






 








From controlled affiliate investments:






 






 






 






 






 






 






 






 








PIK interest






 






—






 






 






1,071






 






 






208






 






 






1,631






 








Interest income (reversal)






 






—






 






 






72






 






 






(224






)






 






118






 








Total investment income






 






20,665






 






 






23,545






 






 






96,019






 






 






99,915






 








Expenses






 






 






 






 






 






 






 






 








Interest expense






 






8,025






 






 






8,210






 






 






32,805






 






 






32,256






 








Base management fee






 






2,854






 






 






3,083






 






 






11,741






 






 






12,261






 








Performance based incentive fee






 






—






 






 






—






 






 






—






 






 






295






 








Administrative fee






 






316






 






 






391






 






 






1,519






 






 






1,650






 








Professional fees






 






815






 






 






621






 






 






2,537






 






 






2,328






 








General and administrative






 






464






 






 






447






 






 






1,941






 






 






1,866






 








Total expenses






 






12,474






 






 






12,752






 






 






50,543






 






 






50,656






 








Net investment income before excise tax






 






8,191






 






 






10,793






 






 






45,476






 






 






49,259






 








(Credit) provision for excise tax






 






(60






)






 






367






 






 






1,063






 






 






1,476






 








Net investment income






 






8,251






 






 






10,426






 






 






44,413






 






 






47,783






 








Net realized and unrealized gain (loss)






 






 






 






 






 






 






 






 








Net realized loss on non-affiliate investments






 






(23,294






)






 






(3,209






)






 






(29,997






)






 






(34,668






)








Net realized gain on non-controlled affiliate investments






 






—






 






 






—






 






 






—






 






 






37






 








Net realized loss on controlled affiliate investments






 






—






 






 






—






 






 






(25,117






)






 






—






 








Net realized loss on investments






 






(23,294






)






 






(3,209






)






 






(55,114






)






 






(34,631






)








Net realized loss on extinguishment of debt






 






(782






)






 






—






 






 






(2,819






)






 






—






 








Net realized loss






 






(24,076






)






 






(3,209






)






 






(57,933






)






 






(34,631






)








Net unrealized appreciation (depreciation) on non-affiliate investments






 






26,769






 






 






(12,297






)






 






25,503






 






 






(14,392






)








Net unrealized (depreciation) appreciation on non-controlled affiliate investments






 






(2,114






)






 






(13






)






 






(1,904






)






 






8,361






 








Net unrealized depreciation on controlled affiliate investments






 






—






 






 






(7,339






)






 






(12,740






)






 






(12,754






)








Net unrealized appreciation (depreciation) on investments






 






24,655






 






 






(19,649






)






 






10,859






 






 






(18,785






)








Net realized and unrealized gain (loss)






 






579






 






 






(22,858






)






 






(47,074






)






 






(53,416






)








Net increase (decrease) in net assets resulting from operations






$






8,830






 






$






(12,432






)






$






(2,661)






 






$






(5,633






)








Net investment income per common share - basic






$






0.18






 






$






0.27






 






$






1.05






 






$






1.32






 








Net investment income per common share - diluted






$






0.18






 






$






0.27






 






$






1.05






 






$






1.32






 








Net increase (decrease) in net assets resulting from operations per common share - basic






$






0.20






 






$






(0.32






)






$






(0.06






)






$






(0.16






)








Net increase (decrease) in net assets resulting from operations per common share - diluted






$






0.19






 






$






(0.32






)






$






(0.06






)






$






(0.16






)








Weighted average shares outstanding - basic






 






44,790,809






 






 






38,797,437






 






 






42,348,813






 






 






36,104,415






 








Weighted average shares outstanding - diluted






 






51,124,142






 






 






38,797,437






 






 






42,348,813






 






 






36,104,415






 








Distributions declared per share






$






0.33






 






$






0.33






 






$






1.32






 






$






1.37






 







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260303101080/en/
Investor Relations:

ICR

Garrett Edson

ir@horizontechfinance.com

(646) 200-8885
Media Relations:

ICR

Chris Gillick

HorizonPR@icrinc.com

(646) 677-1819


Original: Horizon Technology Finance Announces Fourth Quarter and Full Year 2025 Financial Results