Gladstone Investment Corporation Prices 4M Share Offering At $7.50 per Share

Gladstone Investment Corporation

today announced that it has entered into an agreement to sell 4,000,000 shares of its Common Stock at a public offering price of $7.50 per share, raising $30.0 million in gross proceeds and $28.3 million in net proceeds after payment of underwriting discounts and commissions and estimated expenses of the offering payable by the Company. The Company has also granted the underwriters a 30-day option to purchase 600,000 additional shares of Common Stock on the same terms and conditions. The closing of the transaction is subject to customary closing conditions and the shares are expected to be delivered on October 5, 2012. Jefferies & Company, Inc. is serving as the sole book-running manager for the offering, and Janney Montgomery Scott LLC is serving as joint lead manager and J.J.B. Hilliard, W.L. Lyons, LLC, Ladenburg Thalmann & Co. Inc. and Wunderlich Securities, Inc. are serving as co-managers. The Company intends to use the net proceeds from its offering to repay existing short-term debt under its revolving credit facility and then to make investments in small- and mid-sized businesses in accordance with its investment objectives, with any remaining proceeds to be used for general corporate purposes. Investors are advised to carefully consider the investment objectives, risks and charges and expenses of the Company before investing. A prospectus supplement, dated October 2, 2012, which will be filed with the Securities and Exchange Commission, and the accompanying prospectus, dated July 26, 2012, which has been filed with the Securities and Exchange Commission, contain this and other information about the Company and should be read carefully before investing.