Convertible

Rand Capital Corp. invested $500,000 in convertible promissory notes in Buffalo, NY-based Somerset Gas Transmission Co. LLC as part of a $3 million private placement bridge loan. Rand’s investment also provided a warrant for a minority equity interest in the company, which is planning to provide interstate natural gas pipeline transportation services from the Chicago hub and Appalachian producing basins to markets in the Northeast and Mid Atlantic. Somerset’s plan involves gas transportation through its own pipelines and the lines of others. One of Somerset’s initial acquisitions was a 40-mile section of gathering line and related facilities in Indiana County, PA, from Columbia Gas Transmission Corp. “The Somerset management team has worked for more than five years to assemble a network of pipelines and rights-of-way to transport natural gas,” said Rand CFO Daniel P. Penberthy. “Rand’s funding will allow the company to continue this acquisition strategy as the company completes their pipeline network. In this regard, Rand’s investment is structured to provide both a current return and provides the option for Rand to participate in the company’s next round of financing.”

Rand Capital Corp. invested $500,000 in convertible promissory notes in Buffalo, NY-based Somerset Gas Transmission Co. LLC as part of a $3 million private placement bridge loan. Rand’s investment also provided a warrant for a minority equity interest in the company, which is planning to provide interstate natural gas pipeline transportation services from the Chicago hub and Appalachian producing basins to markets in the Northeast and Mid Atlantic. Somerset’s plan involves gas transportation through its own pipelines and the lines of others. One of Somerset’s initial acquisitions was a 40-mile section of gathering line and related facilities in Indiana County, PA, from Columbia Gas Transmission Corp. “The Somerset management team has worked for more than five years to assemble a network of pipelines and rights-of-way to transport natural gas,” said Rand CFO Daniel P. Penberthy. “Rand’s funding will allow the company to continue this acquisition strategy as the company completes their pipeline network. In this regard, Rand’s investment is structured to provide both a current return and provides the option for Rand to participate in the company’s next round of financing.”