Sutter Rock Capital Corp. Third Quarter 2019 Preliminary Investment and Portfolio Activity Update
October 07 2019 - 8:00AM
Sutter Rock Capital Corp. (“Sutter Rock”
or the “Company”) (Nasdaq:SSSS) today provided the
following update on its investment and portfolio activity for the
third quarter ended September 30, 2019.
“Given the volatility during the third quarter
in the broader equity market, specifically in the technology
sector, we wanted to provide a preliminary quarter-end update for
our shareholders,” said Mark Klein, President and Chief Executive
Officer of Sutter Rock. “For the quarter ended September 30,
2019, we expect Sutter Rock’s net asset value per share to increase
to approximately $11.15 to $11.40 per share from $10.75 as of June
30, 2019. Overall, the expected increase in net asset value is due
to the appreciation in value of our portfolio as a result of recent
financings and M&A activity involving our portfolio
companies.”
As previously reported, Sutter Rock’s net assets
totaled approximately $211.1 million, or $10.75 per share, at June
30, 2019, compared to approximately $195.4 million, or $9.89 per
share, at December 31, 2018 and approximately $213.4 million, or
$10.58 per share, at September 30, 2018. As of September 30,
2019, Sutter Rock’s net asset value per share is estimated to be
between $11.15 and $11.40 including liquid assets of $63.0 million,
consisting of cash and marketable securities.
Klein continued, “Our priority has always been
to focus on investment performance, which will drive our net asset
value. We believe this, coupled with our continued
implementation of shareholder initiatives designed to enhance
shareholder value, will lead to a higher equity value for our
shareholders.”
Investment Portfolio Update and Selected
Portfolio Company Developments
At September 30, 2019, Sutter Rock held
positions in 25 portfolio companies – 24 privately-held and one
publicly-held.
During the three months ended September 30,
2019, Sutter Rock exited its remaining investment in Dropbox,
Inc.:
Portfolio Company |
Shares Sold |
Average Net Share Price (1) |
Net Proceeds |
Realized Gain |
Dropbox, Inc. |
437,530 |
$21.03 |
$9.2
million |
$1.7
million |
|
|
|
|
|
(1) The average net share price is the net share
price realized after deducting all commissions and fees on the
sales. |
During the three months ended September 30,
2019, Sutter Rock funded the following new and follow-on
investments:
Portfolio Company |
Investment |
Transaction Date |
Amount Invested |
Aspiration, Inc. |
Convertible Note |
8/9/2019 |
$0.3
million |
GreenAcreage Real Estate Corp. |
Common Stock |
8/13/2019 |
$7.5
million |
Treehouse Real Estate Corp. |
Common Stock |
9/11/2019 |
$7.5
million |
Share Repurchase Program
As previously announced on the August 2019 Q2
earnings call, Sutter Rock’s Board of Directors authorized a $5.0
million expansion of the share repurchase program to an aggregate
of $25.0 million. During the three months ended September 30, 2019,
the Company repurchased an additional 605,327 shares of its common
stock for an aggregate purchase price of $3.9 million. The
dollar value of shares that may yet be purchased by the Company
under the share repurchase program is approximately $5.2
million.
Under the publicly announced share repurchase
program, as of September 30, 2019, the Company has repurchased
3,139,484 shares of its common stock for approximately $19.8
million since the share repurchase program was announced in August
2017.
Preliminary Estimates and
Guidance
The preliminary financial estimates provided
herein are unaudited and have been prepared by, and are the
responsibility of, the management of Sutter Rock. Neither our
independent registered public accounting firm, nor any other
independent accountants, have audited, reviewed, compiled, or
performed any procedures with respect to the preliminary financial
data included herein. Actual results may differ materially.
The Company expects to announce its third
quarter results on November 6, 2019.
About Sutter Rock Capital
Corp.
Sutter Rock Capital Corp. (Nasdaq:SSSS) is a
publicly traded investment fund that seeks to invest in
high-growth, venture-backed private companies. The fund seeks to
create a portfolio of high-growth emerging private companies via a
repeatable and disciplined investment approach, as well as to
provide investors with access to such companies through its
publicly traded common stock. Sutter Rock is headquartered in San
Francisco, CA. www.sutterrock.com
Forward-Looking Statements
Statements included herein, including statements
regarding Sutter Rock's beliefs, expectations, intentions or
strategies for the future, may constitute "forward-looking
statements". Sutter Rock cautions you that forward-looking
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
or implied in these statements. All forward-looking statements
involve a number of risks and uncertainties that could cause actual
results to differ materially from the plans, intentions and
expectations reflected in or suggested by the forward-looking
statements. Risk factors, cautionary statements and other
conditions which could cause Sutter Rock's actual results to differ
from management's current expectations are contained in Sutter
Rock's filings with the Securities and Exchange Commission.
Sutter Rock undertakes no obligation to update any forward-looking
statement to reflect events or circumstances that may arise after
the date of this press release.
Contact
Sutter Rock Capital Corp.(650)
235-4769IR@sutterrock.com
Media Contact
Bill DouglassGotham Communications,
LLCCommunications@sutterrock.com
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