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Investigation of Monroe Capital Corporation Merger by Kahn Swick & Foti, LLC
ByAinvest
Wednesday, Aug 13, 2025 1:36 pm ET1min read
Monroe Capital Corporation's proposed merger with Horizon Technology Finance Corporation is under investigation by former Louisiana Attorney General Charles C. Foti Jr. and law firm Kahn Swick & Foti, LLC. The firm is seeking to determine if the merger and process are fair to Monroe Capital shareholders. Investors can contact the firm for more information.
Monroe Capital Corporation (NASDAQ: MRCC) is facing scrutiny over its proposed merger with Horizon Technology Finance Corporation (HRZN) as former Louisiana Attorney General Charles C. Foti Jr. and law firm Kahn Swick & Foti, LLC, conduct an investigation into the fairness of the transaction for MRCC shareholders. The merger, announced in August 2025, has raised questions about the financial health and strategic direction of Monroe Capital.According to the company's Q2 2025 financial results, Monroe Capital reported a significant decline in Net Investment Income (NII) and Net Asset Value (NAV). The NII fell to $3.3 million, down from $4.1 million in the previous quarter, while the NAV decreased to $179.6 million, down from $186.9 million. These declines highlight the company's deteriorating financial performance, which has been exacerbated by the merger and asset sale to Monroe Capital Income Plus Corporation (MCIP).
The merger agreement, subject to shareholder approval, involves MRCC merging into HRZN and selling its investment assets to MCIP prior to the closing. The transaction aims to create "meaningful value" for shareholders, but critics argue that it is primarily defensive given MRCC's declining fundamentals. The simultaneous asset sale to MCIP suggests a complex restructuring that may end MRCC as a standalone public entity.
Investors are encouraged to contact Kahn Swick & Foti, LLC for more information about the investigation. The firm is seeking to determine if the merger and process are fair to MRCC shareholders, especially in light of the company's recent financial struggles.
References
[1] https://www.stocktitan.net/news/MRCC/monroe-capital-corporation-bdc-announces-second-quarter-2025-results-fftr2zylnuno.html
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