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Full Circle Capital, Great Elm Capital Sign Merger Deal; OKs Special Cash Distribution

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Full Circle Capital ( FULL ), a non-diversified closed-end management investment company, said Friday that it has entered a into a merger agreement with Great Elm Capital Corp ( GEC ).

The combined company, to be named Great Elm Capital Corp., will apply for listing on NASDAQ under the symbol "GECC". Full Circle stockholders are expected to own about 38% of the combined Great Elm Capital Corp., based on a pro-forma net asset value in excess of $190 million as of March 31, 2016. The parent of Great Elm Capital Management, Inc. will own about 15% of the outstanding shares, on a pro-forma basis.

Immediately prior to the completion of the merger, Full Circle will declare a special cash distribution to Full Circle stockholders of about $0.22 per share, aggregating to $5 million, or 6% of Full Circle's March 31, 2016 net asset value.

The exact exchange ratio in the merger will be determined by the net asset value of the parties at the end of the month prior to the distribution of the proxy statement to Full Circle's stockholders to vote on the merger. In addition to approval by Full Circle's stockholders and payment of the special distribution, the closing of the merger is subject to customary conditions. The parties currently expect the transaction to be completed in the second half of calendar 2016.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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