180 Degree Capital Corp. Notes Preliminary +28% and +1.60 Per Share Growth in its Public Portfolio in Q1 2021 and Currently E...
April 05 2021 - 09:00AM
180 Degree Capital Corp. (NASDAQ:TURN) (“180”) today provided a
preliminary update on its performance during the first quarter of
2021.
“We are proud of the performance of our public
investments during the first quarter of 2021,” said Kevin M.
Rendino, Chief Executive Officer of 180. “Our preliminary +28%
gross total return equates to an estimated increase in value of
approximately +$16.6 million, or +1.60 per share. We ended the
quarter with approximately $74.0 million in cash and securities of
publicly traded companies, or $7.13 per share, an increase of
approximately 24% from the end of 2020. We note that these results
include a preliminary fair value of our restricted shares of common
and convertible preferred stock (on a converted to common stock
basis) of TheMaven, Inc. (MVEN) at $0.7869 per share versus the
closing price of MVEN’s common stock on March 31, 2021, of $0.91
per share.”1
“We have begun the process of valuing our
privately held companies as of the end of Q1 2021,” continued Mr.
Rendino. “As of December 31, 2020, our privately held portfolio was
fair valued at $38.7 million. As we noted in our last shareholder
call, we remain cautiously optimistic regarding the potential for
monetization events in our private portfolio to occur in 2021. With
the information available to us as of this release, and inclusive
of normal levels of operating expenses and accruals for potential
year-end bonuses, we believe the gains in our public portfolio will
lead to an increase in our net asset value per share (NAV) as of
March 31, 2021 from $9.28 as of December 31, 2021.”
“We also are pleased to note the preliminary
gross total returns of our separately managed account in Q1 2021 of
+20.7%, equivalent to an increase of $6.8 million,” added Daniel B.
Wolfe, President of 180. “If the year ended today, we would receive
approximately $2.0 million, or +$0.19 per share, in carried
interest, and the preliminary net total return for the separately
managed account would be +14.5%. We receive carried interest from
this account annually and note that this carried interest is not
included in our public portfolio performance, nor will it be
included in our reported NAV as of the end of Q1 2021.”
Kevin Rendino concluded, “180 is off to a
fantastic start to the year. We look forward to sharing our full
results, as well as other notable updates, during our next
quarterly conference call in May.”
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 March 31, 2021, or time-based volume weighted
prices per share, as applicable, for securities of publicly traded
companies owned by 180. 180 is an internally managed registered
closed-end fund that has a material portion of its assets in legacy
privately held companies and certain restricted and/or unlisted
securities of publicly traded companies that are fair valued on a
quarterly basis by the Valuation Committee of its Board of
Directors. This valuation process for the first quarter of 2021 has
yet to be completed as of the date of this release, and thus
valuations of these securities as presented in this release are
preliminary and may change once final fair values are set. Past
performance is not an indication of future results.
180 Degree Capital (NASDAQ:TURN)
Historical Stock Chart
From Feb 2024 to Mar 2024
180 Degree Capital (NASDAQ:TURN)
Historical Stock Chart
From Mar 2023 to Mar 2024