180 Degree Capital Corp. Anchors Underwritten Public Offering by Sonim Technologies, Inc. and Provides QTD Public Portfolio U...
June 10 2020 - 9:00AM
180 Degree Capital Corp. (NASDAQ:TURN) (“180”) announced today that
it invested approximately $6.9 million in the $27.6 million
underwritten public offering by Sonim Technologies, Inc. (“SONM”)
that closed on June 9, 2020. 180’s investment purchased 9,250,000
shares of SONM’s common stock at a price per share of $0.75. 180
invested approximately $4.4 million of its capital in the offering,
with the remaining $2.5 million invested from its separately
managed account. 180 and its managed account collectively own
approximately 14% of the outstanding shares of common stock of
SONM.
SONM is a provider of ultra-rugged mobility
solutions designed specifically for task workers physically engaged
in their work environments, often in mission-critical roles. The
SONM solution includes ultra-rugged mobile phones, a suite of
industrial-grade accessories, and data and workflow applications
which are collectively designed to increase worker productivity,
communication and safety on the job site.
“We are excited to have the opportunity to act
as the anchor investor in SONM’s public offering and to be a large
shareholder of the company,” said Kevin M. Rendino, Chief Executive
Officer of 180. “We are especially pleased to be invested in
SONM’s management team led by its CEO, Tom Wilkinson. My prior
fund, RGJ Capital, was a significant shareholder in Tom’s prior
company, Xplore Technologies Corporation (“XPLR”). Under his
leadership, XPLR’s business was dramatically improved and the
company was ultimately acquired. We have confidence in his
abilities as an executive to engineer a similar turnaround at SONM.
Lastly, we want to acknowledge Lake Street Capital Markets, one of
the joint book-running managers of SONM’s offering. Lake Street’s
underwriting of this transaction positively contributed to our
decision to anchor this financing.”
“We also are pleased to note the gross total
returns of our public portfolio of 32.4%, equivalent to an increase
of $0.35 per share, for the quarter to date,” added Daniel B.
Wolfe, President of 180. “It is too early to predict where we will
end the quarter. That said, we believe this performance and the
currently estimated increase of $0.27-$0.29 per share from the sale
of one of our privately held life science portfolio companies
currently position us well for meaningful growth of our net asset
value per share in Q2 2020.”1
About 180 Degree Capital
Corp.
180 Degree Capital Corp. is a publicly traded
registered closed-end fund focused on investing in and providing
value-added assistance through constructive activism to what we
believe are substantially undervalued small, publicly traded
companies that have potential for significant turnarounds. Our goal
is that the result of our constructive activism leads to a reversal
in direction for the share price of these investee companies, i.e.,
a 180-degree turn. Detailed information about 180 and its holdings
can be found on its website at www.180degreecapital.com.
Press Contact:Daniel B. Wolfe180 Degree Capital
Corp.ir@180degreecapital.com973-746-4500
Forward-Looking Statements
This press release may contain statements of a
forward-looking nature relating to future events. These
forward-looking statements are subject to the inherent
uncertainties in predicting future results and conditions. These
statements reflect the Company's current beliefs, and a number of
important factors could cause actual results to differ materially
from those expressed in this press release. Please see the
Company's securities filings filed with the Securities and Exchange
Commission for a more detailed discussion of the risks and
uncertainties associated with the Company's business and other
significant factors that could affect the Company's actual results.
Except as otherwise required by Federal securities laws, the
Company undertakes no obligation to update or revise these
forward-looking statements to reflect new events or uncertainties.
The reference and link to the website www.180degreecapital.com has
been provided as a convenience, and the information contained on
such website is not incorporated by reference into this press
release. 180 is not responsible for the contents of third-party
websites.
1 Gross total return calculation based on the
closing prices on June 9, 2020, or time-based volume weighted
prices per share, as applicable, for securities of publicly traded
companies owned by 180. This gross total return may be materially
different as of the end of the second quarter of 2020. 180 is an
internally managed registered closed-end fund that has a
substantial portion of its assets in legacy privately held
companies that are fair valued on a quarterly basis by the
Valuation Committee of its Board of Directors. Past performance is
not an indication of future results.
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