Harris & Harris Group, Inc. announced today that it has received $5,700,000 in cash from PHZ Capital Partners L.P. in accordance with the definitive agreement announced on November 1, 2002. PHZ Capital Partners has indicated that it will make one or more additional payments to Harris & Harris Group in early 2003 to liquidate fully Harris & Harris Group's 20 percent interest.
As previously announced, the total amount of cash, and the tax effects that the liquidation of Harris & Harris Group's interest in PHZ will generate, will be determined definitively upon the closing of PHZ's books for the year 2002 and the completion of Harris & Harris Group's annual audit for the year 2002. The timing of the complete payout to Harris & Harris Group is governed by the definitive agreement and depends under certain circumstances on PHZ's profitability through December 31, 2002. At September 30, 2002, Harris & Harris Group valued its interest in PHZ at $6,086,271.
In 1995, Harris & Harris Group invested $720,000 as the seed venture capital investor in PHZ. Prior to today's payment of $5,700,000, PHZ had paid out to Harris & Harris Group a total of $2,045,680 in partnership cash distributions.
PHZ organizes and manages investment partnerships utilizing its proprietary algorithms. PHZ's assets under management and PHZ's capital had reached all-time highs, and the liquidation of Harris & Harris Group's interest is expected to have no effect on PHZ's operations.
Harris & Harris Group is a publicly traded venture capital company. The Company now makes initial investments exclusively in tiny-technology enabled companies, and its last eight initial private equity investments have been in such companies.
Harris & Harris Group, Inc. is a Business Development Company with 11,498,845 common shares outstanding.
Detailed information about Harris & Harris Group, Inc. and its holdings can be found on its website at http://www.TinyTechVC.com.
This press release may contain statements of a forward-looking nature relating to future events. Statements contained in this press release that are forward looking statements are intended to be made pursuant to the Safe Harbor Provisions for the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements reflect the Company's current beliefs, and a number of important factors could cause actual results to differ materially from those expressed in this press release. Please see the Company's Annual Report on Form 10-K and recent Prospectus filed with the Securities and Exchange Commission for a more detailed discussion of the risks and uncertainties associated with the Company's business, including but not limited to the risks and uncertainties associated with venture capital investing and other significant factors that could affect the Company's actual results. Except as otherwise required by Federal securities laws, Harris & Harris Group, Inc. undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties.