Horizon Technology Finance Corp. is offering shareholders a sweeter deal as it heads into a vote on its proposed merger with Monroe Capital Corp. — a combination that would consolidate two lenders already under the same management umbrella into a single, larger specialty finance company.
Horizon Technology Finance Corp. is offering shareholders a sweeter deal as it heads into a vote on its proposed merger with Monroe Capital Corp. — a combination that would consolidate two lenders already under the same management umbrella into a single, larger specialty finance company.
Horizon, based in Farmington, specializes in making venture loans to startup and growth-stage companies in industries including technology, health care and clean energy. Its investment adviser has been owned by Monroe, a Chicago-based asset manager, since 2023. The proposed merger would absorb Monroe into Horizon.
Horizon would continue as the surviving public company under its existing management and Nasdaq ticker symbol, HRZN.
To win shareholder support ahead of Friday’s vote, Horizon’s board announced Tuesday that it plans to tap $27.6 million in accumulated earnings to pay supplemental monthly distributions to shareholders of the combined company for two quarters after the merger closes.
The company estimated the extra payments would amount to at least 2 cents to 4 cents per share per month on top of its regular dividend.
Monroe separately announced it would increase a planned final distribution to its own shareholders by $13 million, or $0.61 per share, contingent on the deal’s approval.
Shareholders are scheduled to vote Friday at 2:30 p.m. on whether to approve the company issuing new shares as consideration in the merger — a step required under Nasdaq listing rules because the issuance would exceed 20% of shares currently outstanding. Approval requires a majority of votes cast.
Tuesday’s announcement came as Horizon works to resolve three shareholder lawsuits seeking to block the vote. Two stockholders filed separate complaints in New York County Supreme Court in February and a third complaint was filed in January in Delaware.
The three suits allege that the proxy statement Horizon sent to shareholders in January omitted critical information needed to evaluate the deal.
Horizon has denied the claims have merit, but on March 6 filed a supplemental disclosure with the U.S Securities and Exchange Commission that added the missing projections.
Horizon said the supplemental filing would not delay the vote.
The company’s stock was trading at $4.22 Tuesday morning, down from more than $9 a year ago. The deal was announced Aug. 7, 2025.
