___________________________________________________________________________________________________________________________________________________ NEWS & ALERTS
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Shareholders Approve Change To A
Registered Non-Diversified Closed-End Fund and
Changed The Name To
RENN Global Entrepreneurs Fund, Inc.
Dallas, Texas, May 20, 2009. On Friday, May 15, 2009, at the Annual Shareholders Meeting, a majority of the shareholders approved restructuring the Fund by changing from a Business Development Company to a registered non-diversified closed-end fund. Additionally, the name of the Fund was changed to RENN Global Entrepreneurs Fund, Inc. The symbol will remain the same (NYSE-AMEX:RCG). The core investment strategy of investing in growing entrepreneurially-managed companies will remain the same. Switching to a registered non-diversified closed-end fund will give more flexibility to invest in open market purchases including Chinese and other foreign corporations traded in the United States.
RENN Global Entrepreneurs Fund, Inc. was incorporated in 1994 as a Business Development Company with an offering price of $10.00 per share and began publicly trading in 1996. Beginning with $39 million in net capital, the Fund has distributed $83.4 million in cash and deemed dividends ($68.9 million after consideration of taxes and the amounts retained from the deemed dividends). On a per-share basis, this would be $19.19 and $15.95 on gross and net bases, respectively. If RENN had retained these dividends, the NAV per share would now be $20.13 ($4.18 as of May 15, 2009 plus $15.95).
About RENN Global Entrepreneurs Fund, Inc.
RENN Global Entrepreneurs Fund, Inc. will be a registered non-diversified closed-end fund concentrating on investing in emerging publicly-traded growth companies. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current portfolio consists of investments in 30 businesses in various industries.
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Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report may contain forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
Investor Contact:
RENN Capital Group, Inc.
Kathryn Semon
(214) 891-8294
___________________________________________________________________________________________________________________________________________________ NEWS & ALERTS
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Renaissance Capital Growth & Income Fund III, Inc.
Announces its Annual Meeting and RENN Investor Conference
Dallas, Texas, April 22, 2009, Renaissance Capital Growth & Income Fund III, Inc. (NYSE-AMEX:RCG) will hold its Annual Meeting and the RENN Investor Conference on Friday, May 15, 2009 at the Hilton Anatole Hotel, 2201 Stemmons Freeway, Dallas, Texas. A continental breakfast will be served starting at 7:30 a.m. with the Annual Meeting beginning at 8 a.m. and concluding with a lunch.
The conference will feature presentations by the management of six unique emerging growth companies from our portfolio, which are Alliance Healthcard Inc. (OTCBB:ALHC), Bovie Medical Corp.(NYSE-AMEX:BVX), BPO Management Services, Inc. (OTCBB:HAXS), Hemobiotech, Inc. (OTCBB:HMBT), and Points International Ltd. (OTCBB:PTSEF). These companies represent such diverse industries as e-marketing, health care cost, data processing services and medical. Mr. Beau Johnson will also be our featured speaker on China. The familiarity that he has acquired with how business is done in China, combined with his experience in the U.S., provides a unique insight into the emerging market opportunities in both countries.
If you plan to attend, please RSVP to Kathryn Semon at kathryn@rencapital.com or 214-891-8295 by Monday, May 4, 2009.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end business development company concentrating on investing in emerging publicly-traded growth companies. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current portfolio consists of investments in 26 businesses in various industries.
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Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
Investor Contact:
RENN Capital Group, Inc.
214-891-8294
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NEWS & ALERTS
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Change in Special Shareholders Meeting Date
Dallas, Texas, January 20, 2009, The Board of Directors of Renaissance Capital Growth & Income Fund III, Inc. (NYSE: RCG) has changed the date of the Special Shareholders Meeting from March 16, 2009 to May 15, 2009, which is our Annual Shareholders Meeting date. At that time the Board intends to recommend to shareholders that the structure of the Fund be changed from a Business Development Company to a registered non-diversified closed-end fund to take advantage of the opportunities in the public market place. The core investment strategy of investing in growing entrepreneurially-managed companies will remain the same. Switching to a registered non-diversified closed-end fund will give more flexibility to invest in open market purchases including Chinese and other foreign corporations traded in the United States. If approved, the name of the Fund will be changed to RENN Global Entrepreneurs Fund, Inc. A proxy will be sent to shareholders giving full details and calling for approval of such changes at the Annual Meeting.
According to Russell Cleveland, President, “The Stock Market of 2008, in my opinion, has created one of the best opportunities in history for investors to find values. Subject to shareholder approval, we intend to implement a new structure to respond to these opportunities. The rules for Business Development Companies are too restrictive, and most securities purchased in the open market are not eligible. While the Investment Advisor will give up an incentive fee, I believe this change will be in the best interest of shareholders.”
Renaissance Capital Growth and Income Fund III, Inc. was incorporated in 1994 as a Business Development Company, and began trading publicly in 1996 with an offering price of $10.00 per share. Beginning with $39 Million in capital, the Fund has distributed cash and deemed dividends of $83.4 Million, and as of January 7, 2009, holds net assets of $19.3 Million. In the past the Fund has made total distributions of $19.19 per share which, combined with the net asset value is $4.33 per share as of January 7, 2009, gives a total of $23.52 per share.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end business development company concentrating on investing in emerging publicly-traded growth companies. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current portfolio consists of investments in 26 businesses in various industries.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
January 9, 2009
Dear Shareholders:
IMPORTANT LETTER
Introduction
The Stock Market of 2008, in our opinion, has created one of the best opportunities in history for investors to find values. To paraphrase Emerson, this time, similar to all times, is a good time if you know what to do. Your Investment Advisor and Board of Directors have given a great deal of consideration to this matter and have determined, subject to Shareholder approval, that we should create a new structure for the Fund to respond appropriately. While we continue to believe in our core philosophy that the greatest long-term opportunities lie in investing with growing entrepreneurially-managed companies, we must think globally. Your Board of Directors intends to recommend that the structure of the Fund change from a Business Development Company to a non-diversified closed-end fund. In addition to the investment flexibility that would occur, there would no longer be an incentive fee paid to the Investment Advisor. Your Board of Directors intends to call a special shareholders meeting to be held on March 16, 2009 to vote on this issue. You will receive a proxy giving the full details. The regular Annual Meeting of Shareholders will be on May 15, 2009. This letter will outline where we have been, where we are going, and where we should be going.
Where We Have Been
Renaissance Capital Growth and Income Fund III, Inc. (“RENN III”) was incorporated in 1994 as a Business Development Company, and began trading publicly in 1996. The offering price was $10.00 per share. We are pleased that, since then, the Fund has made total distributions of $19.19 per share. Beginning with $38.97 million in capital, we have distributed cash and deemed dividends of $83.40 million.
Where We Are Today
Similar to most closed-end funds and Business Development Companies, our stock has been selling at a substantial discount to net asset value. This discount appears to reflect more the overall market conditions as opposed to the fundamentals of the Fund. As of January 7, 2009, the net asset value was $19.33 million or $4.33 per share. Adding the $19.33 million to the distributions of $83.40 million gives a total of $102.73 million or $23.52 per share.
We currently have 26 positions in our portfolio. A number of these positions are selling at very low valuations. Some of our major positions have made public announcements regarding merger plans that could substantially increase revenues and earnings. In this marketplace very few investors have been paying attention. However, if history is a guide, sooner or later, real values will assert themselves.
We currently have no debt and $2.5 million in cash. Your Board of Directors has been studying the opportunities being presented in the marketplace today and comparing this with the restrictive rules governing Business Development Companies. Your Board of Directors believes a new approach would benefit shareholders.
First, the most restrictive rule for Business Development Companies states that 70% of the portfolio must be invested directly into eligible companies. Securities purchased in the open market are not usually eligible. Second, the business must be concentrated in the United States. This handicaps the Fund especially in this stock market where there are so many international opportunities that offer greater potential for capital appreciation. Many foreign companies participating in the growth of Asia as a whole, and China in particular, are now publicly traded in the United States. We want to emphasize that these companies are trading under US rules and standards. We do not intend to invest in foreign stock exchanges. Many of these companies are continuing to grow rapidly. They are being managed by outstanding entrepreneurs, yet they are trading at very reasonable valuations. However, given the current structure of the Fund, these companies are not eligible for investment.
Where We Are Going
To take advantage of the opportunities being presented globally, your Board of Directors is recommending that RENN III change from a Business Development Company to a non-diversified, closed-end fund. This will give the investment Fund more flexibility in making investments. Additionally, if the shareholders approve the change and the Fund becomes a closed-end fund, the investment Advisor will no longer be entitled to receive incentive fees. You will be issued a proxy outlining all of the changes which are to be voted on at the special meeting on March 16, 2009.
In the proxy your Board of Directors will also recommend changing the name of the Fund to “RENN Global Entrepreneurs Fund, Inc.” to better reflect the activities of the Fund.
Dividends
Regardless of whether the Fund is a Business Development Company or a non-diversified closed-end fund, net realized capital gains must be distributed under its election as a Regulated Investment Company under Sub Chapter M of the Internal Revenue Code. Capital gains distributions will be considered annually. The Board of Directors will determine the time and method of payment.
Conclusion
Your Board of Directors believes a new structure is needed to take advantage of current and future opportunities. You will receive a proxy outlining all of the recommended changes. Your Board of Directors and investment Advisor strive to continue to create value for shareholders.
Best Wishes for 2009,
Sincerely,
Russell Cleveland, President
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
Dallas, Texas, May 21, 2007, Renaissance Capital Growth, Inc., (OTC:RENN), is scheduled to be listed on the AMEX effective Tuesday, May 22, 2007. The company will trade under the symbol RCG. To commemorate this event, the company will ring the bell opening the trading session at 9:30 a.m. EDT. Russell Cleveland, CEO of Renaissance, will do the honors, and will then tour the floor and join the specialist for the company on the trading floor. “We are very excited about the move to the American Stock Exchange,” Mr. Cleveland stated. “This will provide added exposure of the Fund to institutional investors and provide our current investors with increased transparency and liquidity.”
PRESS RELEASE - FOR IMMEDIATE RELEASE
Board of Directors Recommends Important Structure Change For The Fund
Dallas, Texas, January 9, 2009, The Board of Directors of Renaissance Capital Growth & Income Fund III, Inc. (NYSE: RCG), intends to recommend to shareholders that the structure of the Fund be changed from a Business Development Company to a non-diversified closed-end fund to take advantage of the opportunities in the public market place. The core investment strategy of investing in growing entrepreneurially-managed companies will remain the same. Switching to a non-diversified closed-end fund will give more flexibility to invest in open market purchases including Chinese and other foreign corporations traded in the United States. The name of the Fund will be changed to RENN Global Entrepreneurs Fund, Inc. The Board of Directors intends to call a special shareholders meeting to vote on the issue. A proxy will be sent to shareholders giving full details.
According to Russell Cleveland, President, “The Stock Market of 2008, in my opinion, has created one of the best opportunities in history for investors to find values. Subject to shareholder approval, we need a new structure to respond to these opportunities. The rules for Business Development Companies are too restrictive and most securities purchased in the open market are not eligible. While the investment advisor will give up an incentive fee, I believe this change will be in the best interest of shareholders.”
Renaissance Capital Growth and Income Fund III, Inc. was incorporated in 1994 as a Business Development Company, and began trading publicly in 1996. The offering price was $10.00 per share. The Fund has made total distributions of $19.19 per share. Beginning with $38.97 million in capital, the Fund has distributed cash and deemed dividends of $83.40 million. As of January 7, 2009, the net asset value was $19.33 million or $4.33 per share. Adding the $19.33 million to the distributions of $83.40 million gives a total of $102.73 million or $23.52 per share.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end business development company concentrating on investing in emerging publicly-traded growth companies. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current portfolio consists of investments in 26 businesses in various industries.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
Investor Contacts:
RENN Capital Group, Inc.
Kathryn Semon
(214) 891-8294
PRESS RELEASE - FOR IMMEDIATE RELEASE
Renaissance Capital Announces Third Quarter Distribution of $0.10 Per Share
Total distributions since inception to reach $19.19 per share
Dallas, Texas, September 26, 2008 Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), a specialty closed-end fund announces that the Board of Directors on September 25, 2008, has approved a quarterly cash distribution of $0.10 per share. The distribution will be payable on October 22, 2008, to shareholders of record as of October 3, 2008.
The Fund was established in 1994 at $10.00 per share. Total distributions since inception, including cash and deemed dividends, is $19.19 per share.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end business development fund concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.The Fund's current Portfolio consists of investments in 34 businesses in various industries.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.This report contains forward-looking statements.Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions.Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein.Past performance is not indicative of future results.For additional information, please visit www.rencapital.com.
Investor Contact:
RENN Capital Group, Inc.
214-891-8294
Media Relations Contact:
Chris Rosgen
Capital Market Relations
(949) 481-9739
PRESS RELEASE - FOR IMMEDIATE RELEASE
Renaissance Capital Announces Second Quarter Distribution of $0.10 Per Share
Total distribution since inception to reach $19.09 per share
Dallas, Texas, June 18, 2008 Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), a specialty closed-end fund announces that the Board of Directors has approved on June 17, 2008, a quarterly cash dividend distribution of $0.10 per share. The dividend will be payable on July 15, 2008, to shareholders of record as of June 30, 2008.
The Fund was established in 1994 at $10.00 per share.Total distribution since inception, including cash and deemed dividends, is $19.09 per share.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end business development fund concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.The Fund's current Portfolio consists of investments in 34 businesses in various industries.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.This report contains forward-looking statements.Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions.Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein.Past performance is not indicative of future results.For additional information, please visit www.rencapital.com.
Investor Contact:
RENN Capital Group, Inc.
214-891-8294
Media Relations Contact:
Chris Rosgen
Capital Market Relations
(949) 481-9739
PRESS RELEASE - FOR IMMEDIATE RELEASE
Annual Renaissance Investor Conference Spotlights Emerging Growth Companies
Special Presentation on U.S.-Listed Chinese Companies Keynotes Event
Dallas, Texas, May 07, 2008, Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG) will have a special session on the fast-growing China market keynoted by Dr. Richard Propper, an authority on investing in China, at the Company's Annual Investor Conference. The Conference will be held on Friday, May 16, 2008 at the Hilton Anatole Hotel, 2201 Stemmons Freeway, Dallas, Texas.
Dr. Propper is an experienced venture capitalist and financial strategist. For the past few years, he has been focused on building business relationships between Chinese and U.S. companies. The familiarity that he has acquired with how business is done in China, combined with his experience in the U.S., provides a unique insight into the emerging market opportunities in both countries.
Dr. Propper will speak on China and give an update on two RCG holdings: A-Power Energy Generation Systems, Ltd. (NASDAQ:APWR) and HLS Systems International, Ltd. (OTC: HLSYF).
A-Power Energy Generation Systems, Ltd., through its PRC operating subsidiary, Liaoning GaoKe Energy Group Co., Ltd., is the largest provider of distributed power generation systems in China and will enter into China's wind energy market in 2008. The Company is also focused on developing and commercializing additional renewable energy technologies and has strategic relationships with both Tsinghua University and the China Sciences Academy in Guangzhou.
HLS Systems International Limited has become one of the leading automation systems providers in the PRC, developing a number of core technologies and completing numerous projects utilizing a wide array of automation products. The Company specializes in the research, development, production, sale and distribution of industrial automation and control systems, competing effectively with both domestic Chinese companies and large, multinational participants in the industrial, rail and nuclear power sectors.
Additional presentations will be made by the management of six unique emerging growth companies from the RCG portfolio which are:
Bovie Medical Corporation (AMEX:BVX) is actively engaged in the business of manufacturing and marketing medical products and developing related technologies. Over the past several years, Bovie has focused on the manufacture and marketing of generators and electrosurgical disposables, evidenced by the development of a broad range of electrosurgical generators designed for doctor's offices, surgicenters and hospitals. It manufactures and markets products both under private label and the Bovie label to distributors worldwide. Additionally, Bovie has original equipment manufacturing (OEM) agreements with other medical device manufacturers. These OEM and private label arrangements and its use of the Bovie label allow it to gain greater market share for the distribution of our products.
BPO Management Services (BPOMS) (OTC:BPOM) offers a diversified range of solutions and support services to fulfill the back office needs of middle market enterprises on an outsourced basis. BPOMS supports middle market businesses new to the BPO market, established businesses that already outsource, and businesses seeking to maximize return-on-investment from their in-house workforce.
Hemobiotech, Inc. (OTC:HMBT) was founded in order to commercialize the blood substitute technology developed by Mario Feola, M.D. and Jan Simoni, Ph.D., two researchers in the field of blood substitutes.Texas Tech University Health Sciences Center ("TTUHSC") has developed HemoTech in conjunction with the Company.The company believes that HemoTech is a blood substitute that eliminates the traditional weaknesses of competitive products previously under development or currently in U.S. Food and Drug Administration ("FDA") trials.HemoTech also has pharmacological properties that it believes aid in the recovery of patients receiving the product in lieu of transfusions of red blood cells from conventional blood supplies.
PetroHunter Energy Corporation (OTC:PHUN) is a global oil and gas exploration and production company that is committed to acquiring and developing primarily unconventional oil and natural gas prospects that it believes have a very high probability of economic success. PetroHunter Energy has oil and gas prospects in Colorado and Australia.
Points International Ltd. (OTC:PTSEF) is owner and operator of Points.com, the world's leading reward-program management portal. It has developed a proprietary technology platform that allows it to offer a portfolio of Points Solutions to the loyalty program industry. Participating programs include American Airlines AAdvantage® program, American Express® Membership Rewards®, Aeroplan®, AsiaMiles™, Cendant TripRewards®, Delta SkyMiles®, Gold Points Reward Network, InterContinental Hotels Group's Priority Club® Rewards, and S&H greenpoints. Redemption partners include Amazon.com® and Starbucks.
Vertical Branding, Inc. (OTC:VBDG) is a consumer products company selling high-quality household, beauty and personal care products at affordable prices. The Company cost-effectively builds brands and customer awareness by marketing and selling its products directly to consumers through television, Internet and print advertising campaigns.These "transactional marketing" campaigns support broader wholesale distribution, which includes sales to many of the country's largest retailers and drugstore chains, along with catalog proprietors, home shopping channels and international distributors.The Company's hottest-selling products and brands include Hercules Hook, ZorbEEZ, Starmaker, E-Z foldz, SteamBuddy and MyPlace.With a robust product pipeline, VBI continuously develops or acquires exclusive rights to new and complementary products, with a goal of rolling out four to six new products per year. New product introductions and line extensions fuel the Company's growth, while recurring sales from an ever-expanding product portfolio provide a stable base of revenues.
The Conference will begin at 7:30 a.m. with a continental breakfast and, following the Annual Shareholder Meeting and presentations, will conclude around 12:00 noon followed by a light lunch. Interested parties may RSVP by contacting Kathryn Semon at kathryn@rencapital.com or by calling 214-891-8295.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG) is a closed-end Business Development Company concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.The Fund's current portfolio consists of investments in 30 businesses in various industries. The Fund has paid its investors a total of $18.99 per share in total dividends, including cash and deemed dividends, since it was established in 1994 at $10.00.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.This report contains forward-looking statements.Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions.Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein.Past performance is not indicative of future results.For additional information, please visit www.rencapital.com.
Investor Contact:
RENN Capital Group, Inc.
214-891-8294
Media Relations Contact:
Chris Rosgen
Capital Market Relations
(949) 481-9739
PRESS RELEASE - FOR IMMEDIATE RELEASE
Renaissance Capital Growth & Income Fund III, Inc. Announces its Annual RENN III Investor Conference
Dallas, Texas, April 16, 2008, Renaissance Capital Growth & Income Fund III, Inc. (AMEX:RCG) will hold its Annual RENN III Investor Conference on Friday, May 16, 2008 at the Hilton Anatole Hotel, 2201 Stemmons Freeway, Dallas, Texas. The conference will begin at 7:30 a.m. with a continental breakfast and, following the Annual Shareholder Meeting and presentations, will conclude around 12:00 noon followed by a light lunch.
About Renaissance Capital Growth & Income Fund III, Inc.
The conference will feature presentations by the management of six unique emerging growth companies from our portfolio which are: Bovie Medical Corp. (AMEX:BVX), BPO Management Services, Inc. (OTC:BPOM), Hemobiotech, Inc. (OTC:HMBT), PetroHunter Energy Corporation (OTC:PHUN), Points International Ltd. (OTC:PTSEF), and Vertical Branding (OTC:VBDG). We will also have Dr. Richard Propper, an expert in Chinese investing, speak on China and give an update on two additional RENN holdings: A-Power Energy Generation Systems, Ltd. (NASDAQ:APWR) and HLS Systems International, Ltd. (OTC: HLSYF). These companies represent such diverse industries as electric utilities, healthcare equipment, medical, office services and supplies, oil and gas, and specialty retail.
Please RSVP by Thursday, May 1, 2007 to Kathryn Semon at kathryn@rencapital.com or 214-891-8295 if you plan to attend.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end Business Development Company concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current Portfolio consists of investments in 30 businesses in various industries.
Foward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
Investor Contact:
RENN Capital Group, Inc.
214-891-8294
Media Relations Contact:
Chris Rosgen
Capital Market Relations
(949) 481-9739
PRESS RELEASE - FOR IMMEDIATE RELEASE
Renaissance Capital Announces First Quarter Distribution
Total cash distribution since inception to reach $14.01 per share
Dallas, Texas, March 11, 2008 Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), a specialty closed-end fund announces that the Board of Directors has approved a quarterly cash dividend distribution of $0.10 per share. The dividend will be payable on March 31, 2008, to shareholders of record as of March 21, 2008.
With this dividend, the Fund will have paid its investors a total of $14.01 per share in cash distributions since it was established in 1994 at $10.00. Total distribution since inception, including cash and deemed dividends, is $18.99 per share.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end business development fund concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current Portfolio consists of investments in 30 businesses in various industries.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
Investor Contacts:
RENN Capital Group, Inc.
Kathryn Semon
(214) 891-8294
Media Relations Contact:
Chris Rosgen
Capital Market Relations
(949)481-9739
NEWS ALERT
Renaissance Capital Discusses Deemed Dividend
Dallas, Texas, March 3, 2008.
*TO SHAREHOLDERS OF RECORD ON DECEMBER 31, 2007:
What exactly is a deemed dividend, anyway?
Renaissance Capital Growth & Income Fund III, Inc. (the “Fund”) is a non-diversified, closed-end fund that has elected to be treated as a business development company (a “BDC”) under the Investment Company Act of 1940 (the “1940 Act”), as amended. The Fund has also elected to be a regulated investment company (a “RIC”) under Subchapter M of the Internal Revenue Code (the “Code”). Under Subchapter M of the Code, a RIC may deduct distributions paid out of its taxable income and accordingly may avoid federal income tax if it distributes all of its taxable income. With respect to its net long-term capital gains, Subchapter M provides the Fund with three choices: it can retain them and pay tax, it can declare a deemed dividend (or designated undistributed capital gain dividend) or it can pay out the gains as a distribution.
When the Fund declares a deemed dividend instead of a cash distribution, the Fund pays a 35% tax on the retained capital gains, the shareholders are deemed to have received the deemed dividend as a capital gain dividend and the shareholders are deemed to have paid the tax actually paid by the Fund. Thus, they receive a tax credit that they can use to offset their tax on the deemed dividend or for other purposes. The shareholders also increase their cost basis in their shares in the Fund by the amount of the deemed distribution, net of taxes paid by the Fund and deemed paid by the shareholder, or approximately $0.62 (approximately $0.95 deemed distribution, less approximately $0.33 deemed tax paid).
During the year ended December 31, 2007, the Fund realized net taxable long-term gains of approximately $4,689,640 or $1.05 per share. From these capital gains, cash dividends of $0.10 were distributed, bringing the total cash distributions from inception of the Fund to $13.91 per share. In addition to the cash distribution, the Fund elected to retain an estimated $4,243,244 of realized capital gains and has designated them as deemed paid to shareholders of record on December 31, 2007 and will pay the federal income taxes of 35%, equivalent to approximately $1,485,135 or $0.33 per share. The tax effect is the same as if the capital gains had been distributed to the Fund’s shareholders, who then elected to reinvest 65% of the amount received.
What is the payment date?
There is no payment date, as no cash is paid out. However, the net asset value of the Fund was adjusted downward by $0.33 per share as of December 31, 2007 to account for the deemed dividend federal tax payable on behalf of shareholders of record date December 31, 2007. To receive the $0.33 per share deemed dividend tax credit, you must have been a shareholder of record on December 31, 2007.
Who will send me the tax information of the deemed dividend, and when will I get this information?
If you own your shares in “street name” in electronic format, your brokerage firm or bank will send you the tax information.
If you own your shares directly in your own name, American Stock Transfer and Trust Company will send you the tax information.
The Fund filed a capital gains tax return for the year ended December 31, 2007, in January, 2008, and has notified the brokerage firms, banks and American Stock Transfer and Trust Company with the details of the cash and deemed dividends.
If you do not receive the information by March 1, 2008, you should contact your brokerage firm, bank or American Stock Transfer and Trust Company for it. On your tax return you should report your deemed dividend as reflected on the IRS Form 2439 provided to you and attach the form to your return.
What are the consequences of a deemed dividend to me as a shareholder?
The deemed dividend is deemed paid to the shareholders of record as of December 31, 2007. Shareholders of record on the record date will be provided with the exact amount of the deemed dividend attributable to their shares by their brokerage firm or bank, if their shares are held in electronic format, or by American Stock Transfer and Trust Company if their shares are held directly. This information is to be reported to you on an IRS Form 2439 which should be attached to your tax return.
The following simplified example illustrates the tax treatment under Sub-Chapter M of the Internal Revenue Code for the Fund and its shareholders with regard to the estimated $4,243,244 or $0.95 per share net long-term realized capital gain to be retained by the Fund and designated as an undistributed capital gain or deemed dividend:
1. The Fund will pay a corporate-level federal income tax of 35% or approximately $1,485,135 on the undistributed capital gain, or approximately $0.33 per share, on behalf of shareholders.
2. Shareholders will increase their cost basis in their stock by approximately $0.62 per share.
3. All shareholders will receive a federal tax credit equal to the 35% tax paid by the Fund on the undistributed capital gain, or approximately $0.33 per share. Taxable shareholders can use that credit to offset their federal tax liabilities for 2007 and can claim a refund on Form 1040 to the extent of any unused credit. (After payment of the federal income tax of the deemed dividend, a shareholder taxable at 15% federal capital gains tax rate will have a remaining tax credit of $0.19 per share.) Shareholders who hold their shares in tax-deferred accounts can receive a refund from the IRS of the taxes paid on their behalf by the Fund on the deemed dividend by having their custodians file IRS Form 990T with the IRS. (It typically takes several months for custodians to receive the refund and deposit it into shareholders’ accounts.) Other tax exempt shareholders can also receive refunds of the taxes paid on their behalf on the deemed dividend by filing IRS Form 990T.
Shareholders requiring further information about the impact of the deemed dividend on their state and/or local taxes should consult their tax advisors.
Why did the company choose to declare a deemed dividend rather that a cash dividend at this time?
The Board of Directors, after careful deliberation and the review of feedback from shareholders, has decided that it is in the best interest of the Fund and its continued growth to declare a deemed dividend. Allowing the Fund to retain capital will enable the Fund to take advantage of future investment opportunities and allow the net asset value to grow. From a bookkeeping point of view, shareholders wind up in the same position whether the Fund pays deemed dividends or cash dividends, as Figures 1 and 2 illustrate.
Figure 1 – Analysis of Deemed Dividend Effect with Respect to Taxable Shareholders
Taxable Shareholders
If I have questions about my individual tax situation, where can I get them answered?
Renaissance Capital Growth & Income Fund III, Inc. is not equipped or qualified to give tax advice. You should consult your tax advisor.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
Investor Contacts:
RENN Capital Group, Inc.
Kathryn Semons
(214) 891-8294
Media Relations Contact:
Chris Rosgen
Capital Market Relations
(949)481-9739
PRESS RELEASE - FOR IMMEDIATE RELEASE
Renaissance Capital Resumes Quarterly Dividend Program
Board of Directors Announces Fourth Quarter 2007 Cash and Deemed Dividends
Dallas, Texas, December 17, 2007 - Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), a specialty closed-end fund announces that the Board of Directors has approved a cash dividend distribution of $0.10 per share. The dividend will be payable on January 14, 2008, to shareholders of record as of December 31, 2007. This action resumes the quarterly dividend payments.
With this dividend, the Fund will have paid its investors a total of $13.91 per share in cash distributions since it was established in 1994 at $10.00. Total distribution since inception, including deemed dividends, is estimated to be $18.89 per share, including the $0.95 estimated deemed dividend as discussed in more detail below.
The board has also announced a deemed dividend for shareholders of record as of December 31, 2007. The deemed dividend is currently estimated to be $4,255,511 or approximately $0.95 per share. This estimate is subject to change as the Fund prepares and finalizes its tax return for 2007. Shareholders will receive the deemed dividend information from their brokerage firm, bank, or American Stock Transfer and Trust Company, as applicable. This information will be reported to shareholders on IRS Form 2439.
When the Fund declares a deemed dividend instead of a cash distribution, the Fund pays a 35% tax on the retained capital gains, the shareholders are deemed to have received the deemed dividend as a capital gain dividend and the shareholders are deemed to have paid the tax actually paid by the Fund. Thus, they receive a tax credit that they can use to offset their tax on the deemed dividend or for other purposes. The shareholders also increase their cost basis in their shares in the Fund by the amount of the deemed distribution, net of taxes paid by the company and deemed paid by the shareholder, approximately $0.62 (representing the $0.95 deemed distribution, less the $0.33 deemed tax paid).
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end Business Development fund concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current Portfolio consists of investments in 25 businesses in various industries.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
Investor Contacts:
RENN Capital Group, Inc.
Kathryn Semon
(214) 891-8294
Media Relations Contact:
Chris Rosgen
Capital Market Relations
(949)481-9739
PRESS RELEASE - FOR IMMEDIATE RELEASE
New Book by Fund Manager Offers Investment Insight
“It’s all about the CEO,” states the author.
Dallas, Texas, June 12, 2007 (PR Newswire) – What exactly makes a company worth investing in? Russell Cleveland, the President of Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), answers that question in his new book, Finding Midas, an entertaining and enlightening discourse on investment fundamentals.
"The key to mega-stock investing is not focusing on the industry, but rather on the entrepreneurial leadership characteristics of the CEO. This strategy is what RENN Capital Group uses to provide, in some cases, soaring returns for investors. You might just find the next Wal-Mart, Starbucks, or eBay," he says.
Cleveland explains his CEO assessment strategy in a manner that is accessible to beginners, while containing insights that can benefit the most experienced investor. Filled with plenty of relevant anecdotes, Finding Midas convincingly argues that the companies with the strongest and most involved leaders are the ones that bring in the biggest profits for their investors.
The book includes case studies on some of the most successful business executives in recent history, including Warren Buffett, Michael Dell, Howard Schultz and Meg Whitman. Not only does the book examine the leadership traits that can be used to predict success, it also examines fundamental topics such as diversification, pricing, when to sell and other critical information.
“Every serious student of investing should read this book. It should be required reading for every broker and advisor in the business. Exposure to the ideas set forth would be invaluable to students in helping jumpstart their knowledge and investing experience. It’s a great read,” according to Don Hodges, Chairman of the Hodges Fund and who was awarded 2006 Best Fund Manager by Lipper Analytical for three years among all US multi cap funds.
About the Author:
Russell Cleveland is the principal founder and the majority shareholder of RENN Capital Group, Inc. RENN provides capital to emerging publicly owned companies. Russell is a Chartered Financial Analyst who has specialized in investing in emerging growth companies for over 40 years. Mr. Cleveland is a graduate of the University of Pennsylvania, Wharton School of Finance and Commerce.
Besides serving as President and Director of Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), he is also Director and Manager of Renaissance US Growth and Income Trust PLC, which is traded on the London Exchange, U.S. Portfolio manager of US Special Opportunities Trust PLC (London based) and Premier RENN US Emerging Growth Limited (London based).
Mr. Cleveland currently serves on the Board of Directors of Cover-All Technologies, Inc., CaminoSoft Corp., Integrated Security Systems, Inc., Tutogen Medical, Inc., and Access Plans USA. Over the years, he has served on the boards of many publicly traded emerging growth companies. More information on the book is available at www.findingmidas.com.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end Business Development Company concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current Portfolio consists of investments in 28 businesses in various industries. The Fund has paid its investors a total of $13.81 per share to its investors in cash distributions since its initial public offering in 1994 at $10.00. To help preserve the investing power of the future of the Fund, the Board of Directors on December 31, 2006 declared a deemed dividend of $4.03 per share ($1.41 of which was a deemed tax paid to the IRS on its shareholders behalf), the remainder was reinvested. To be added to the Renaissance Capital Growth & Income Fund III, Inc. news distribution list, click here: http://www.b2i.us/irpass.asp?BzID=1404&to=ea&s=0. More information on the company can be found at www.rencapital.com.
Forward Looking Statements:
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results.
Contact:
Chris Rosgen
Capital Market Relations
www.capitalmarketrelations.com
949.481.9739 Office
949.289.5075 Mobile
"Building Shareholder Value Through Proactive Communications."
Capital Market Relations serves as financial relations counsel to this company and is acting on the company's behalf in issuing this bulletin and is receiving compensation for these services. This e-mail is being sent to you for your information or at your request. Neither this e-mail nor any attachment is an offer or a solicitation to buy or sell securities. Information upon which this material is based was obtained from sources believed to be reliable but has not been verified and cannot be warranted as to completeness or accuracy. Investors should not rely on the information given by Capital Market Relations to make investment decisions. Rather, investors should use the information only as a starting point to do additional independent research so that the investor is able to make his or her own investment decision. The contents of this e-mail or any attachment are strictly intended for use only by professional or institutional investors and select members of the media or trade. Additional information is available upon request. To be removed from the client news distribution list, please use the link below. Capital Market Relations, 27674 Emerald Mission Viejo, CA. 92691
PRESS RELEASE - FOR IMMEDIATE RELEASE
Renaissance Capital Growth & Income Fund III (RENN) to be listed on the American Stock Exchange under the Ticker Symbol: (AMEX: RCG)
About American Stock Exchange
The American Stock Exchange® (Amex®) offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRSSM. In addition to its role as a national equities market, the Amex is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex lists 309 ETFs to date. The Amex is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end Business Development Company concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current Portfolio consists of investments in 28 businesses in various industries. The Fund has paid its investors a total of $13.81 per share to its investors in cash distributions since its initial public offering in 1994 at $10.00. To help preserve the investing power of the future of the Fund, the Board of Directors on December 31, 2006 declared a deemed dividend of $4.03 per share ($1.41 of which was a deemed tax paid to the IRS on its shareholders behalf), the remainder was reinvested. More information on the company can be found at www.rencapital.com.
Forward Looking Statements:
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results.
Shareholder Relations: Michelle Sparks, Renaissance Capital 214-891-8294
Media Relations: Chris Rosgen, Capital Market Relations (949)481-9739
PRESS RELEASE - FOR IMMEDIATE RELEASE
Renaissance Investor Conference To Be Webcast Live Friday May 18, 2007
Six Emerging Growth Companies To Present
___________________________________________________________________________________________________________________________________________________
Change in Special Shareholders Meeting Date
Dallas, Texas, January 20, 2009, The Board of Directors of Renaissance Capital Growth & Income Fund III, Inc. (NYSE: RCG) has changed the date of the Special Shareholders Meeting from March 16, 2009 to May 15, 2009, which is our Annual Shareholders Meeting date. At that time the Board intends to recommend to shareholders that the structure of the Fund be changed from a Business Development Company to a registered non-diversified closed-end fund to take advantage of the opportunities in the public market place. The core investment strategy of investing in growing entrepreneurially-managed companies will remain the same. Switching to a registered non-diversified closed-end fund will give more flexibility to invest in open market purchases including Chinese and other foreign corporations traded in the United States. If approved, the name of the Fund will be changed to RENN Global Entrepreneurs Fund, Inc. A proxy will be sent to shareholders giving full details and calling for approval of such changes at the Annual Meeting.
According to Russell Cleveland, President, “The Stock Market of 2008, in my opinion, has created one of the best opportunities in history for investors to find values. Subject to shareholder approval, we intend to implement a new structure to respond to these opportunities. The rules for Business Development Companies are too restrictive, and most securities purchased in the open market are not eligible. While the Investment Advisor will give up an incentive fee, I believe this change will be in the best interest of shareholders.”
Renaissance Capital Growth and Income Fund III, Inc. was incorporated in 1994 as a Business Development Company, and began trading publicly in 1996 with an offering price of $10.00 per share. Beginning with $39 Million in capital, the Fund has distributed cash and deemed dividends of $83.4 Million, and as of January 7, 2009, holds net assets of $19.3 Million. In the past the Fund has made total distributions of $19.19 per share which, combined with the net asset value is $4.33 per share as of January 7, 2009, gives a total of $23.52 per share.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end business development company concentrating on investing in emerging publicly-traded growth companies. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current portfolio consists of investments in 26 businesses in various industries.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
January 9, 2009
Dear Shareholders:
IMPORTANT LETTER
Introduction
The Stock Market of 2008, in our opinion, has created one of the best opportunities in history for investors to find values. To paraphrase Emerson, this time, similar to all times, is a good time if you know what to do. Your Investment Advisor and Board of Directors have given a great deal of consideration to this matter and have determined, subject to Shareholder approval, that we should create a new structure for the Fund to respond appropriately. While we continue to believe in our core philosophy that the greatest long-term opportunities lie in investing with growing entrepreneurially-managed companies, we must think globally. Your Board of Directors intends to recommend that the structure of the Fund change from a Business Development Company to a non-diversified closed-end fund. In addition to the investment flexibility that would occur, there would no longer be an incentive fee paid to the Investment Advisor. Your Board of Directors intends to call a special shareholders meeting to be held on March 16, 2009 to vote on this issue. You will receive a proxy giving the full details. The regular Annual Meeting of Shareholders will be on May 15, 2009. This letter will outline where we have been, where we are going, and where we should be going.
Where We Have Been
Renaissance Capital Growth and Income Fund III, Inc. (“RENN III”) was incorporated in 1994 as a Business Development Company, and began trading publicly in 1996. The offering price was $10.00 per share. We are pleased that, since then, the Fund has made total distributions of $19.19 per share. Beginning with $38.97 million in capital, we have distributed cash and deemed dividends of $83.40 million.
Where We Are Today
Similar to most closed-end funds and Business Development Companies, our stock has been selling at a substantial discount to net asset value. This discount appears to reflect more the overall market conditions as opposed to the fundamentals of the Fund. As of January 7, 2009, the net asset value was $19.33 million or $4.33 per share. Adding the $19.33 million to the distributions of $83.40 million gives a total of $102.73 million or $23.52 per share.
We currently have 26 positions in our portfolio. A number of these positions are selling at very low valuations. Some of our major positions have made public announcements regarding merger plans that could substantially increase revenues and earnings. In this marketplace very few investors have been paying attention. However, if history is a guide, sooner or later, real values will assert themselves.
We currently have no debt and $2.5 million in cash. Your Board of Directors has been studying the opportunities being presented in the marketplace today and comparing this with the restrictive rules governing Business Development Companies. Your Board of Directors believes a new approach would benefit shareholders.
First, the most restrictive rule for Business Development Companies states that 70% of the portfolio must be invested directly into eligible companies. Securities purchased in the open market are not usually eligible. Second, the business must be concentrated in the United States. This handicaps the Fund especially in this stock market where there are so many international opportunities that offer greater potential for capital appreciation. Many foreign companies participating in the growth of Asia as a whole, and China in particular, are now publicly traded in the United States. We want to emphasize that these companies are trading under US rules and standards. We do not intend to invest in foreign stock exchanges. Many of these companies are continuing to grow rapidly. They are being managed by outstanding entrepreneurs, yet they are trading at very reasonable valuations. However, given the current structure of the Fund, these companies are not eligible for investment.
Where We Are Going
To take advantage of the opportunities being presented globally, your Board of Directors is recommending that RENN III change from a Business Development Company to a non-diversified, closed-end fund. This will give the investment Fund more flexibility in making investments. Additionally, if the shareholders approve the change and the Fund becomes a closed-end fund, the investment Advisor will no longer be entitled to receive incentive fees. You will be issued a proxy outlining all of the changes which are to be voted on at the special meeting on March 16, 2009.
In the proxy your Board of Directors will also recommend changing the name of the Fund to “RENN Global Entrepreneurs Fund, Inc.” to better reflect the activities of the Fund.
Dividends
Regardless of whether the Fund is a Business Development Company or a non-diversified closed-end fund, net realized capital gains must be distributed under its election as a Regulated Investment Company under Sub Chapter M of the Internal Revenue Code. Capital gains distributions will be considered annually. The Board of Directors will determine the time and method of payment.
Conclusion
Your Board of Directors believes a new structure is needed to take advantage of current and future opportunities. You will receive a proxy outlining all of the recommended changes. Your Board of Directors and investment Advisor strive to continue to create value for shareholders.
Best Wishes for 2009,
Sincerely,
Russell Cleveland, President
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
Dallas, Texas, May 21, 2007, Renaissance Capital Growth, Inc., (OTC:RENN), is scheduled to be listed on the AMEX effective Tuesday, May 22, 2007. The company will trade under the symbol RCG. To commemorate this event, the company will ring the bell opening the trading session at 9:30 a.m. EDT. Russell Cleveland, CEO of Renaissance, will do the honors, and will then tour the floor and join the specialist for the company on the trading floor. “We are very excited about the move to the American Stock Exchange,” Mr. Cleveland stated. “This will provide added exposure of the Fund to institutional investors and provide our current investors with increased transparency and liquidity.”
PRESS RELEASE - FOR IMMEDIATE RELEASE
Board of Directors Recommends Important Structure Change For The Fund
Dallas, Texas, January 9, 2009, The Board of Directors of Renaissance Capital Growth & Income Fund III, Inc. (NYSE: RCG), intends to recommend to shareholders that the structure of the Fund be changed from a Business Development Company to a non-diversified closed-end fund to take advantage of the opportunities in the public market place. The core investment strategy of investing in growing entrepreneurially-managed companies will remain the same. Switching to a non-diversified closed-end fund will give more flexibility to invest in open market purchases including Chinese and other foreign corporations traded in the United States. The name of the Fund will be changed to RENN Global Entrepreneurs Fund, Inc. The Board of Directors intends to call a special shareholders meeting to vote on the issue. A proxy will be sent to shareholders giving full details.
According to Russell Cleveland, President, “The Stock Market of 2008, in my opinion, has created one of the best opportunities in history for investors to find values. Subject to shareholder approval, we need a new structure to respond to these opportunities. The rules for Business Development Companies are too restrictive and most securities purchased in the open market are not eligible. While the investment advisor will give up an incentive fee, I believe this change will be in the best interest of shareholders.”
Renaissance Capital Growth and Income Fund III, Inc. was incorporated in 1994 as a Business Development Company, and began trading publicly in 1996. The offering price was $10.00 per share. The Fund has made total distributions of $19.19 per share. Beginning with $38.97 million in capital, the Fund has distributed cash and deemed dividends of $83.40 million. As of January 7, 2009, the net asset value was $19.33 million or $4.33 per share. Adding the $19.33 million to the distributions of $83.40 million gives a total of $102.73 million or $23.52 per share.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end business development company concentrating on investing in emerging publicly-traded growth companies. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current portfolio consists of investments in 26 businesses in various industries.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
Investor Contacts:
RENN Capital Group, Inc.
Kathryn Semon
(214) 891-8294
PRESS RELEASE - FOR IMMEDIATE RELEASE
Renaissance Capital Announces Third Quarter Distribution of $0.10 Per Share
Total distributions since inception to reach $19.19 per share
Dallas, Texas, September 26, 2008 Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), a specialty closed-end fund announces that the Board of Directors on September 25, 2008, has approved a quarterly cash distribution of $0.10 per share. The distribution will be payable on October 22, 2008, to shareholders of record as of October 3, 2008.
The Fund was established in 1994 at $10.00 per share. Total distributions since inception, including cash and deemed dividends, is $19.19 per share.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end business development fund concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.The Fund's current Portfolio consists of investments in 34 businesses in various industries.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.This report contains forward-looking statements.Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions.Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein.Past performance is not indicative of future results.For additional information, please visit www.rencapital.com.
Investor Contact:
RENN Capital Group, Inc.
214-891-8294
Media Relations Contact:
Chris Rosgen
Capital Market Relations
(949) 481-9739
PRESS RELEASE - FOR IMMEDIATE RELEASE
Renaissance Capital Announces Second Quarter Distribution of $0.10 Per Share
Total distribution since inception to reach $19.09 per share
Dallas, Texas, June 18, 2008 Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), a specialty closed-end fund announces that the Board of Directors has approved on June 17, 2008, a quarterly cash dividend distribution of $0.10 per share. The dividend will be payable on July 15, 2008, to shareholders of record as of June 30, 2008.
The Fund was established in 1994 at $10.00 per share.Total distribution since inception, including cash and deemed dividends, is $19.09 per share.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end business development fund concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.The Fund's current Portfolio consists of investments in 34 businesses in various industries.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.This report contains forward-looking statements.Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions.Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein.Past performance is not indicative of future results.For additional information, please visit www.rencapital.com.
Investor Contact:
RENN Capital Group, Inc.
214-891-8294
Media Relations Contact:
Chris Rosgen
Capital Market Relations
(949) 481-9739
PRESS RELEASE - FOR IMMEDIATE RELEASE
Annual Renaissance Investor Conference Spotlights Emerging Growth Companies
Special Presentation on U.S.-Listed Chinese Companies Keynotes Event
Dallas, Texas, May 07, 2008, Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG) will have a special session on the fast-growing China market keynoted by Dr. Richard Propper, an authority on investing in China, at the Company's Annual Investor Conference. The Conference will be held on Friday, May 16, 2008 at the Hilton Anatole Hotel, 2201 Stemmons Freeway, Dallas, Texas.
Dr. Propper is an experienced venture capitalist and financial strategist. For the past few years, he has been focused on building business relationships between Chinese and U.S. companies. The familiarity that he has acquired with how business is done in China, combined with his experience in the U.S., provides a unique insight into the emerging market opportunities in both countries.
Dr. Propper will speak on China and give an update on two RCG holdings: A-Power Energy Generation Systems, Ltd. (NASDAQ:APWR) and HLS Systems International, Ltd. (OTC: HLSYF).
A-Power Energy Generation Systems, Ltd., through its PRC operating subsidiary, Liaoning GaoKe Energy Group Co., Ltd., is the largest provider of distributed power generation systems in China and will enter into China's wind energy market in 2008. The Company is also focused on developing and commercializing additional renewable energy technologies and has strategic relationships with both Tsinghua University and the China Sciences Academy in Guangzhou.
HLS Systems International Limited has become one of the leading automation systems providers in the PRC, developing a number of core technologies and completing numerous projects utilizing a wide array of automation products. The Company specializes in the research, development, production, sale and distribution of industrial automation and control systems, competing effectively with both domestic Chinese companies and large, multinational participants in the industrial, rail and nuclear power sectors.
Additional presentations will be made by the management of six unique emerging growth companies from the RCG portfolio which are:
Bovie Medical Corporation (AMEX:BVX) is actively engaged in the business of manufacturing and marketing medical products and developing related technologies. Over the past several years, Bovie has focused on the manufacture and marketing of generators and electrosurgical disposables, evidenced by the development of a broad range of electrosurgical generators designed for doctor's offices, surgicenters and hospitals. It manufactures and markets products both under private label and the Bovie label to distributors worldwide. Additionally, Bovie has original equipment manufacturing (OEM) agreements with other medical device manufacturers. These OEM and private label arrangements and its use of the Bovie label allow it to gain greater market share for the distribution of our products.
BPO Management Services (BPOMS) (OTC:BPOM) offers a diversified range of solutions and support services to fulfill the back office needs of middle market enterprises on an outsourced basis. BPOMS supports middle market businesses new to the BPO market, established businesses that already outsource, and businesses seeking to maximize return-on-investment from their in-house workforce.
Hemobiotech, Inc. (OTC:HMBT) was founded in order to commercialize the blood substitute technology developed by Mario Feola, M.D. and Jan Simoni, Ph.D., two researchers in the field of blood substitutes.Texas Tech University Health Sciences Center ("TTUHSC") has developed HemoTech in conjunction with the Company.The company believes that HemoTech is a blood substitute that eliminates the traditional weaknesses of competitive products previously under development or currently in U.S. Food and Drug Administration ("FDA") trials.HemoTech also has pharmacological properties that it believes aid in the recovery of patients receiving the product in lieu of transfusions of red blood cells from conventional blood supplies.
PetroHunter Energy Corporation (OTC:PHUN) is a global oil and gas exploration and production company that is committed to acquiring and developing primarily unconventional oil and natural gas prospects that it believes have a very high probability of economic success. PetroHunter Energy has oil and gas prospects in Colorado and Australia.
Points International Ltd. (OTC:PTSEF) is owner and operator of Points.com, the world's leading reward-program management portal. It has developed a proprietary technology platform that allows it to offer a portfolio of Points Solutions to the loyalty program industry. Participating programs include American Airlines AAdvantage® program, American Express® Membership Rewards®, Aeroplan®, AsiaMiles™, Cendant TripRewards®, Delta SkyMiles®, Gold Points Reward Network, InterContinental Hotels Group's Priority Club® Rewards, and S&H greenpoints. Redemption partners include Amazon.com® and Starbucks.
Vertical Branding, Inc. (OTC:VBDG) is a consumer products company selling high-quality household, beauty and personal care products at affordable prices. The Company cost-effectively builds brands and customer awareness by marketing and selling its products directly to consumers through television, Internet and print advertising campaigns.These "transactional marketing" campaigns support broader wholesale distribution, which includes sales to many of the country's largest retailers and drugstore chains, along with catalog proprietors, home shopping channels and international distributors.The Company's hottest-selling products and brands include Hercules Hook, ZorbEEZ, Starmaker, E-Z foldz, SteamBuddy and MyPlace.With a robust product pipeline, VBI continuously develops or acquires exclusive rights to new and complementary products, with a goal of rolling out four to six new products per year. New product introductions and line extensions fuel the Company's growth, while recurring sales from an ever-expanding product portfolio provide a stable base of revenues.
The Conference will begin at 7:30 a.m. with a continental breakfast and, following the Annual Shareholder Meeting and presentations, will conclude around 12:00 noon followed by a light lunch. Interested parties may RSVP by contacting Kathryn Semon at kathryn@rencapital.com or by calling 214-891-8295.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG) is a closed-end Business Development Company concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.The Fund's current portfolio consists of investments in 30 businesses in various industries. The Fund has paid its investors a total of $18.99 per share in total dividends, including cash and deemed dividends, since it was established in 1994 at $10.00.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.This report contains forward-looking statements.Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions.Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein.Past performance is not indicative of future results.For additional information, please visit www.rencapital.com.
Investor Contact:
RENN Capital Group, Inc.
214-891-8294
Media Relations Contact:
Chris Rosgen
Capital Market Relations
(949) 481-9739
PRESS RELEASE - FOR IMMEDIATE RELEASE
Renaissance Capital Growth & Income Fund III, Inc. Announces its Annual RENN III Investor Conference
Dallas, Texas, April 16, 2008, Renaissance Capital Growth & Income Fund III, Inc. (AMEX:RCG) will hold its Annual RENN III Investor Conference on Friday, May 16, 2008 at the Hilton Anatole Hotel, 2201 Stemmons Freeway, Dallas, Texas. The conference will begin at 7:30 a.m. with a continental breakfast and, following the Annual Shareholder Meeting and presentations, will conclude around 12:00 noon followed by a light lunch.
About Renaissance Capital Growth & Income Fund III, Inc.
The conference will feature presentations by the management of six unique emerging growth companies from our portfolio which are: Bovie Medical Corp. (AMEX:BVX), BPO Management Services, Inc. (OTC:BPOM), Hemobiotech, Inc. (OTC:HMBT), PetroHunter Energy Corporation (OTC:PHUN), Points International Ltd. (OTC:PTSEF), and Vertical Branding (OTC:VBDG). We will also have Dr. Richard Propper, an expert in Chinese investing, speak on China and give an update on two additional RENN holdings: A-Power Energy Generation Systems, Ltd. (NASDAQ:APWR) and HLS Systems International, Ltd. (OTC: HLSYF). These companies represent such diverse industries as electric utilities, healthcare equipment, medical, office services and supplies, oil and gas, and specialty retail.
Please RSVP by Thursday, May 1, 2007 to Kathryn Semon at kathryn@rencapital.com or 214-891-8295 if you plan to attend.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end Business Development Company concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current Portfolio consists of investments in 30 businesses in various industries.
Foward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
Investor Contact:
RENN Capital Group, Inc.
214-891-8294
Media Relations Contact:
Chris Rosgen
Capital Market Relations
(949) 481-9739
PRESS RELEASE - FOR IMMEDIATE RELEASE
Renaissance Capital Announces First Quarter Distribution
Total cash distribution since inception to reach $14.01 per share
Dallas, Texas, March 11, 2008 Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), a specialty closed-end fund announces that the Board of Directors has approved a quarterly cash dividend distribution of $0.10 per share. The dividend will be payable on March 31, 2008, to shareholders of record as of March 21, 2008.
With this dividend, the Fund will have paid its investors a total of $14.01 per share in cash distributions since it was established in 1994 at $10.00. Total distribution since inception, including cash and deemed dividends, is $18.99 per share.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end business development fund concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current Portfolio consists of investments in 30 businesses in various industries.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
Investor Contacts:
RENN Capital Group, Inc.
Kathryn Semon
(214) 891-8294
Media Relations Contact:
Chris Rosgen
Capital Market Relations
(949)481-9739
NEWS ALERT
Renaissance Capital Discusses Deemed Dividend
Dallas, Texas, March 3, 2008.
*TO SHAREHOLDERS OF RECORD ON DECEMBER 31, 2007:
What exactly is a deemed dividend, anyway?
Renaissance Capital Growth & Income Fund III, Inc. (the “Fund”) is a non-diversified, closed-end fund that has elected to be treated as a business development company (a “BDC”) under the Investment Company Act of 1940 (the “1940 Act”), as amended. The Fund has also elected to be a regulated investment company (a “RIC”) under Subchapter M of the Internal Revenue Code (the “Code”). Under Subchapter M of the Code, a RIC may deduct distributions paid out of its taxable income and accordingly may avoid federal income tax if it distributes all of its taxable income. With respect to its net long-term capital gains, Subchapter M provides the Fund with three choices: it can retain them and pay tax, it can declare a deemed dividend (or designated undistributed capital gain dividend) or it can pay out the gains as a distribution.
When the Fund declares a deemed dividend instead of a cash distribution, the Fund pays a 35% tax on the retained capital gains, the shareholders are deemed to have received the deemed dividend as a capital gain dividend and the shareholders are deemed to have paid the tax actually paid by the Fund. Thus, they receive a tax credit that they can use to offset their tax on the deemed dividend or for other purposes. The shareholders also increase their cost basis in their shares in the Fund by the amount of the deemed distribution, net of taxes paid by the Fund and deemed paid by the shareholder, or approximately $0.62 (approximately $0.95 deemed distribution, less approximately $0.33 deemed tax paid).
During the year ended December 31, 2007, the Fund realized net taxable long-term gains of approximately $4,689,640 or $1.05 per share. From these capital gains, cash dividends of $0.10 were distributed, bringing the total cash distributions from inception of the Fund to $13.91 per share. In addition to the cash distribution, the Fund elected to retain an estimated $4,243,244 of realized capital gains and has designated them as deemed paid to shareholders of record on December 31, 2007 and will pay the federal income taxes of 35%, equivalent to approximately $1,485,135 or $0.33 per share. The tax effect is the same as if the capital gains had been distributed to the Fund’s shareholders, who then elected to reinvest 65% of the amount received.
What is the payment date?
There is no payment date, as no cash is paid out. However, the net asset value of the Fund was adjusted downward by $0.33 per share as of December 31, 2007 to account for the deemed dividend federal tax payable on behalf of shareholders of record date December 31, 2007. To receive the $0.33 per share deemed dividend tax credit, you must have been a shareholder of record on December 31, 2007.
Who will send me the tax information of the deemed dividend, and when will I get this information?
If you own your shares in “street name” in electronic format, your brokerage firm or bank will send you the tax information.
If you own your shares directly in your own name, American Stock Transfer and Trust Company will send you the tax information.
The Fund filed a capital gains tax return for the year ended December 31, 2007, in January, 2008, and has notified the brokerage firms, banks and American Stock Transfer and Trust Company with the details of the cash and deemed dividends.
If you do not receive the information by March 1, 2008, you should contact your brokerage firm, bank or American Stock Transfer and Trust Company for it. On your tax return you should report your deemed dividend as reflected on the IRS Form 2439 provided to you and attach the form to your return.
What are the consequences of a deemed dividend to me as a shareholder?
The deemed dividend is deemed paid to the shareholders of record as of December 31, 2007. Shareholders of record on the record date will be provided with the exact amount of the deemed dividend attributable to their shares by their brokerage firm or bank, if their shares are held in electronic format, or by American Stock Transfer and Trust Company if their shares are held directly. This information is to be reported to you on an IRS Form 2439 which should be attached to your tax return.
The following simplified example illustrates the tax treatment under Sub-Chapter M of the Internal Revenue Code for the Fund and its shareholders with regard to the estimated $4,243,244 or $0.95 per share net long-term realized capital gain to be retained by the Fund and designated as an undistributed capital gain or deemed dividend:
1. The Fund will pay a corporate-level federal income tax of 35% or approximately $1,485,135 on the undistributed capital gain, or approximately $0.33 per share, on behalf of shareholders.
2. Shareholders will increase their cost basis in their stock by approximately $0.62 per share.
3. All shareholders will receive a federal tax credit equal to the 35% tax paid by the Fund on the undistributed capital gain, or approximately $0.33 per share. Taxable shareholders can use that credit to offset their federal tax liabilities for 2007 and can claim a refund on Form 1040 to the extent of any unused credit. (After payment of the federal income tax of the deemed dividend, a shareholder taxable at 15% federal capital gains tax rate will have a remaining tax credit of $0.19 per share.) Shareholders who hold their shares in tax-deferred accounts can receive a refund from the IRS of the taxes paid on their behalf by the Fund on the deemed dividend by having their custodians file IRS Form 990T with the IRS. (It typically takes several months for custodians to receive the refund and deposit it into shareholders’ accounts.) Other tax exempt shareholders can also receive refunds of the taxes paid on their behalf on the deemed dividend by filing IRS Form 990T.
Shareholders requiring further information about the impact of the deemed dividend on their state and/or local taxes should consult their tax advisors.
Why did the company choose to declare a deemed dividend rather that a cash dividend at this time?
The Board of Directors, after careful deliberation and the review of feedback from shareholders, has decided that it is in the best interest of the Fund and its continued growth to declare a deemed dividend. Allowing the Fund to retain capital will enable the Fund to take advantage of future investment opportunities and allow the net asset value to grow. From a bookkeeping point of view, shareholders wind up in the same position whether the Fund pays deemed dividends or cash dividends, as Figures 1 and 2 illustrate.
Figure 1 – Analysis of Deemed Dividend Effect with Respect to Taxable Shareholders
Taxable Shareholders
If I have questions about my individual tax situation, where can I get them answered?
Renaissance Capital Growth & Income Fund III, Inc. is not equipped or qualified to give tax advice. You should consult your tax advisor.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
Investor Contacts:
RENN Capital Group, Inc.
Kathryn Semons
(214) 891-8294
Media Relations Contact:
Chris Rosgen
Capital Market Relations
(949)481-9739
PRESS RELEASE - FOR IMMEDIATE RELEASE
Renaissance Capital Resumes Quarterly Dividend Program
Board of Directors Announces Fourth Quarter 2007 Cash and Deemed Dividends
Dallas, Texas, December 17, 2007 - Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), a specialty closed-end fund announces that the Board of Directors has approved a cash dividend distribution of $0.10 per share. The dividend will be payable on January 14, 2008, to shareholders of record as of December 31, 2007. This action resumes the quarterly dividend payments.
With this dividend, the Fund will have paid its investors a total of $13.91 per share in cash distributions since it was established in 1994 at $10.00. Total distribution since inception, including deemed dividends, is estimated to be $18.89 per share, including the $0.95 estimated deemed dividend as discussed in more detail below.
The board has also announced a deemed dividend for shareholders of record as of December 31, 2007. The deemed dividend is currently estimated to be $4,255,511 or approximately $0.95 per share. This estimate is subject to change as the Fund prepares and finalizes its tax return for 2007. Shareholders will receive the deemed dividend information from their brokerage firm, bank, or American Stock Transfer and Trust Company, as applicable. This information will be reported to shareholders on IRS Form 2439.
When the Fund declares a deemed dividend instead of a cash distribution, the Fund pays a 35% tax on the retained capital gains, the shareholders are deemed to have received the deemed dividend as a capital gain dividend and the shareholders are deemed to have paid the tax actually paid by the Fund. Thus, they receive a tax credit that they can use to offset their tax on the deemed dividend or for other purposes. The shareholders also increase their cost basis in their shares in the Fund by the amount of the deemed distribution, net of taxes paid by the company and deemed paid by the shareholder, approximately $0.62 (representing the $0.95 deemed distribution, less the $0.33 deemed tax paid).
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end Business Development fund concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current Portfolio consists of investments in 25 businesses in various industries.
Forward Looking Statements
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results. For additional information, please visit www.rencapital.com.
Investor Contacts:
RENN Capital Group, Inc.
Kathryn Semon
(214) 891-8294
Media Relations Contact:
Chris Rosgen
Capital Market Relations
(949)481-9739
PRESS RELEASE - FOR IMMEDIATE RELEASE
New Book by Fund Manager Offers Investment Insight
“It’s all about the CEO,” states the author.
Dallas, Texas, June 12, 2007 (PR Newswire) – What exactly makes a company worth investing in? Russell Cleveland, the President of Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), answers that question in his new book, Finding Midas, an entertaining and enlightening discourse on investment fundamentals.
"The key to mega-stock investing is not focusing on the industry, but rather on the entrepreneurial leadership characteristics of the CEO. This strategy is what RENN Capital Group uses to provide, in some cases, soaring returns for investors. You might just find the next Wal-Mart, Starbucks, or eBay," he says.
Cleveland explains his CEO assessment strategy in a manner that is accessible to beginners, while containing insights that can benefit the most experienced investor. Filled with plenty of relevant anecdotes, Finding Midas convincingly argues that the companies with the strongest and most involved leaders are the ones that bring in the biggest profits for their investors.
The book includes case studies on some of the most successful business executives in recent history, including Warren Buffett, Michael Dell, Howard Schultz and Meg Whitman. Not only does the book examine the leadership traits that can be used to predict success, it also examines fundamental topics such as diversification, pricing, when to sell and other critical information.
“Every serious student of investing should read this book. It should be required reading for every broker and advisor in the business. Exposure to the ideas set forth would be invaluable to students in helping jumpstart their knowledge and investing experience. It’s a great read,” according to Don Hodges, Chairman of the Hodges Fund and who was awarded 2006 Best Fund Manager by Lipper Analytical for three years among all US multi cap funds.
About the Author:
Russell Cleveland is the principal founder and the majority shareholder of RENN Capital Group, Inc. RENN provides capital to emerging publicly owned companies. Russell is a Chartered Financial Analyst who has specialized in investing in emerging growth companies for over 40 years. Mr. Cleveland is a graduate of the University of Pennsylvania, Wharton School of Finance and Commerce.
Besides serving as President and Director of Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), he is also Director and Manager of Renaissance US Growth and Income Trust PLC, which is traded on the London Exchange, U.S. Portfolio manager of US Special Opportunities Trust PLC (London based) and Premier RENN US Emerging Growth Limited (London based).
Mr. Cleveland currently serves on the Board of Directors of Cover-All Technologies, Inc., CaminoSoft Corp., Integrated Security Systems, Inc., Tutogen Medical, Inc., and Access Plans USA. Over the years, he has served on the boards of many publicly traded emerging growth companies. More information on the book is available at www.findingmidas.com.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end Business Development Company concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current Portfolio consists of investments in 28 businesses in various industries. The Fund has paid its investors a total of $13.81 per share to its investors in cash distributions since its initial public offering in 1994 at $10.00. To help preserve the investing power of the future of the Fund, the Board of Directors on December 31, 2006 declared a deemed dividend of $4.03 per share ($1.41 of which was a deemed tax paid to the IRS on its shareholders behalf), the remainder was reinvested. To be added to the Renaissance Capital Growth & Income Fund III, Inc. news distribution list, click here: http://www.b2i.us/irpass.asp?BzID=1404&to=ea&s=0. More information on the company can be found at www.rencapital.com.
Forward Looking Statements:
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results.
Contact:
Chris Rosgen
Capital Market Relations
www.capitalmarketrelations.com
949.481.9739 Office
949.289.5075 Mobile
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PRESS RELEASE - FOR IMMEDIATE RELEASE
Renaissance Capital Growth & Income Fund III (RENN) to be listed on the American Stock Exchange under the Ticker Symbol: (AMEX: RCG)
About American Stock Exchange
The American Stock Exchange® (Amex®) offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRSSM. In addition to its role as a national equities market, the Amex is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex lists 309 ETFs to date. The Amex is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks.
About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end Business Development Company concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund’s current Portfolio consists of investments in 28 businesses in various industries. The Fund has paid its investors a total of $13.81 per share to its investors in cash distributions since its initial public offering in 1994 at $10.00. To help preserve the investing power of the future of the Fund, the Board of Directors on December 31, 2006 declared a deemed dividend of $4.03 per share ($1.41 of which was a deemed tax paid to the IRS on its shareholders behalf), the remainder was reinvested. More information on the company can be found at www.rencapital.com.
Forward Looking Statements:
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results.
Shareholder Relations: Michelle Sparks, Renaissance Capital 214-891-8294
Media Relations: Chris Rosgen, Capital Market Relations (949)481-9739
PRESS RELEASE - FOR IMMEDIATE RELEASE
Renaissance Investor Conference To Be Webcast Live Friday May 18, 2007
Six Emerging Growth Companies To Present
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