180 Degree Capital Corp. Leads Investment in TheStreet, Inc.; Investment Enables Removal of Capital Structure Overhang
November 13 2017 - 8:11AM
180 Degree Capital Corp. (“180”, the “Company”) (NASDAQ:TURN),
announced today that it led a $7.85 million round of financing in
TheStreet, Inc. (“TST”). This financing included capital raised
from a family office and high-net-worth individuals through a fund
that was formed and is managed by 180 called TheStreet SPV Series –
a series of 180 Degree Capital Management, LLC. The proceeds
from this financing along with cash from TST’s balance sheet were
used to retire TST’s preferred stock. This preferred stock
has served as an overhang on TST’s ability to build value for
common stockholders. In conjunction with this investment,
Kevin M. Rendino, Chairman and Chief Executive Officer of 180,
joined TST’s Board of Directors.
“We appreciate the opportunity afforded to us by
the Board and Management of TST to help resolve a longstanding
overhang on the company’s common stock,” said Mr. Rendino.
“We were focused on finding a solution to TST’s preferred stock
overhang that provided benefits to all parties involved, and we are
pleased that it came together the way it did. The turnaround
at TST was already underway when we became interested in the
company and its story. As evidenced by this transaction, we
believe the Board and Management team are proving their ability to
create value for all common shareholders.”
“We are delighted to welcome an investor of the
pedigree of Kevin Rendino to our Board of Directors,” said David
Callaway, CEO of TheStreet. “As an important part of our turnaround
strategy, and with 180’s investment and support, we are excited
that we can finally remove a major obstacle in our capital
structure.”
“This transaction affords us our first
opportunity to manage third-party capital,” added Daniel B. Wolfe,
President of 180. “This managed capital will provide 180 with
income and the potential for additional returns on invested
capital. We think this transaction will serve as a model for
the type of ‘constructive activism’ we talk about when describing
our investment process.”
180 will host a conference call today, Monday,
November 13, 2017, at 4pm Eastern Time for our shareholders and
other interested participants to ask questions of the Management of
180 with regard to this transaction.
The dial-in information for the call is noted
below:
U.S. Domestic Dial-In Number: (641)
715-0632Passcode: 415049Webcast:
join.freeconferencecall.com/daniel8166
Presentation materials along with a replay of
the call will be available on the Company's website at
ir.180degreecapital.com/events.cfm.
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.973-746-4500
Forward-Looking StatementsThis
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.
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