SOURCE: Advantage Capital Development Corp.

March 16, 2006 08:30 ET

Advantage Capital Development Corp. Files Form 14C Notification to Shareholders of Its Withdrawal of Election as a Business Development Company

MIAMI, FL -- (MARKET WIRE) -- March 16, 2006 -- Advantage Capital Development Corp. (OTC: AVCP) today announced that it has received written consent in lieu of a meeting of stockholders from holders of 51.09 percent of the Company's issued and outstanding shares approving and authorizing the withdrawal of the Company's election to be treated as a business development company (BDC). The Company has filed a form 14C with the Securities and Exchange Commission notifying its stockholders that it will withdraw its election to be subject to sections 55 through 65 of the Investment Company Act of 1940.

"Despite a major corporate restructuring of the former corporate entity nearly two years ago, we have been burdened by the legacy of those operations," said Jeffrey Sternberg, president and CEO of Advantage Capital Development Corp. "From day one our goal was to achieve a Bulletin Board listing to provide greater exposure and liquidity for our stock. We took all measures possible including hiring a chief compliance officer. Unfortunately, despite our best efforts we have been thwarted in our attempts to get onto the Bulletin Board.

"What's particularly disappointing is that we have made several successful investments in portfolio companies that have advanced as the result of our involvement," Sternberg said. "However, the board of directors feels it is in the best interests of its shareholders at this point to withdraw as a BDC and turn our focus to ensuring Advantage Capital Development Corp.'s future as an operating company."

The next step in the process will be to file Form N-54C notifying the Securities and Exchange Commission that the Company has decided to withdraw its election to be regulated as a BDC.

About Advantage Capital Development Corp.

Advantage Capital has been functioning as a business development company, which operates specifically to meet the needs of small and emerging companies that need capital to grow. Business development companies, as defined under the Investment Act of 1940, are specifically designed to encourage the growth of small businesses. The rules provide certain financing advantages for companies that invest in small and emerging businesses.

Safe Harbor Statement: The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Peter Nasca Associates, Inc.
    Miami
    Peter Nasca
    305-937-1711
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