Stellus Capital Seeks Shareholder Approval for New Advisory Agreement Following Advisor Acquisition

summarizeSummary

Stellus Capital is seeking shareholder approval for a new investment advisory agreement following the acquisition of its advisor by Ridgepost Capital, which is expected to bring new resources and opportunities while maintaining current fee structures.

check_boxKey Events

• Shareholder Vote on New Advisory Agreement

  Shareholders will vote on a new investment advisory agreement with Stellus Capital Management, LLC, necessitated by its acquisition by Ridgepost Capital, LLC.

• Advisor Acquisition by Ridgepost Capital

  The Company's investment advisor, Stellus Capital Management, is being acquired by Ridgepost Capital, triggering the termination of the existing advisory agreement under the 1940 Act.

• Unchanged Advisory Terms

  The proposed new investment advisory agreement maintains identical terms, including fee structure and services, as the existing agreement.

• Potential Strategic Benefits

  The Company expects to gain increased access to investment opportunities, enhanced sourcing capabilities, and additional administrative resources through Ridgepost's larger platform.

auto_awesomeAnalysis

This preliminary proxy statement details the upcoming shareholder vote on a new investment advisory agreement. The existing agreement automatically terminates due to the acquisition of Stellus Capital Management, LLC (the Company's advisor) by Ridgepost Capital, LLC, an event previously announced in the 10-K filed on 2026-03-12. While the terms of the new agreement, including fee structure, remain identical, the Company anticipates benefits from Ridgepost's larger platform, such as enhanced deal origination and administrative resources. Shareholder approval is crucial for the continuity of the advisory relationship, with the Board noting that non-approval could lead to considering other alternatives, including liquidation.