180 Degree Capital Corp. Reports Net Asset Value per Share (“NAV") of $5.02, Comprised of 99% Cash and Public Securities, as of December 31, 2023
February 20 2024 - 4:05PM
180 Degree Capital Corp. (NASDAQ:TURN) (“180 Degree Capital” and
the “Company”), today reported its financial results as of December
31, 2023, and noted additional developments from the first quarter
of 2024. The Company also published a letter to shareholders that
can be viewed at https://ir.180degreecapital.com/financial-results.
“The fourth quarter of 2023 was the start of
what we believe will be a return to risk asset classes, including
the microcapitalization stocks in which we invest,” said Kevin M.
Rendino, Chief Executive Officer of 180 Degree Capital. “Our +6.9%
gross total return in our public portfolio was the primary
contributor to the growth of our net asset value per share (“NAV”)
from $4.91 to $5.02. Our assets on our balance sheet are now almost
100% comprised of investments in public companies and cash1. On the
macroeconomic front, the resilience of the US economy combined with
the apparent end of the Fed’s tightening cycle and likely future
reductions in interest rates should be one tailwind for our
investments in general in 2024. For 180, we believe 2024 will be a
year defined by our constructive activism and by long-awaited
catalysts at certain of our portfolio companies that together could
lead to material value creation for 180 Degree Capital’s
stockholders.”
“180 Degree Capital’s constructive activism
focuses on working with management teams and/or boards of directors
of our portfolio companies to build value for all stakeholders in
those businesses,” said Daniel B. Wolfe, President of 180 Degree
Capital. “We do not have the hubris to believe we know the
businesses of our investee companies better than their management
teams and boards. We believe we have a complementary skill set and
contacts that can help unlock trapped value. We believe this
complementarity is what led to the invitation to join the Board of
Directors of Synchronoss Technologies, Inc. (“SNCR”). We have
rolled up our sleeves to help SNCR’s management and board wherever
possible and could not be more excited about the opportunity for
value creation that we believe exists for SNCR. It is unfortunate
that the Board of Directors of comScore, Inc. (“SCOR”), does not
have the same openness and humility to recognize they do not have
all the answers to fixing the destruction of value that has
occurred under their watch. We believe our nominee, Matthew F.
McLaughlin, the former COO of DoubleVerify Holdings, Inc., has both
relevant industry experience for where SCOR is heading with its
business and can be an advocate for proper corporate governance,
particularly for common stockholders, as a significant common
stockholder himself. We believe our constructive activism is not
only a differentiated investment approach, but also can be an
important part of the ultimate unlocking of value for our portfolio
holdings and the creation of value for 180 Degree Capital’s
stockholders.”
Mr. Rendino continued, “As we noted in a press
release on February 1, 2024, the discount of our NAV to our stock
price was approximately 26% as of the end of January 2024. This
discount equates to a NAV as of the end of January 2024 that was
approximately 8% higher than at the end of 2023. We established the
Discount Management Program to make it clear that the management
and Board of Directors of 180 Degree Capital are serious about our
intentions to narrow this discount. We collectively own almost 12%
of 180 Degree Capital’s outstanding shares, and this ownership
continues to grow solely through open market purchases. We are
laser-focused on creating value for all stockholders of 180 Degree
Capital through growth of our NAV and the narrowing of the
discount.”
The table below summarizes 180’s performance
over periods of time through the end of Q4 20232:
|
Quarter |
1 Year |
3 Year |
5 Year |
Inception to Date |
|
Q4 2023 |
Q4 2022- Q4 2023 |
Q4 2020- Q4 2023 |
Q4 2018- Q4 2023 |
Q4 2016- Q4 2023 |
TURN Public Portfolio Gross Total Return (Excluding SMA Carried
Interest) |
6.9% |
-7.3% |
-22.0% |
51.0% |
182.8% |
TURN Public Portfolio Gross Total Return (Including SMA Carried
Interest) |
6.9% |
-7.3% |
-20.0% |
61.2% |
201.4% |
|
|
|
|
|
|
Change in NAV |
2.2% |
-20.6% |
-45.9% |
-36.6% |
-28.5% |
|
|
|
|
|
|
Change in Stock Price |
-3.3% |
-22.3% |
-38.4% |
-21.9% |
-1.0% |
|
|
|
|
|
|
Russell Microcap Index |
16.1% |
9.3% |
1.8% |
50.6% |
48.3% |
Russell Microcap Value Index |
16.8% |
9.5% |
25.9% |
64.8% |
62.1% |
Russell Microcap Growth Index |
15.7% |
7.1% |
-25.8% |
28.9% |
28.6% |
Russell 2000 |
14.0% |
16.9% |
6.7% |
60.6% |
63.8% |
Mr. Rendino and Mr. Wolfe will host a conference
call tomorrow, Wednesday, February 21, 2024, at 9am Eastern Time,
to discuss the results from Q4 2023 and developments to date during
Q1 2024. The call can be accessed by phone at (609) 746-1082
passcode 415049 or via the web at
https://www.freeconferencecall.com/wall/180degreecapital.
Additionally, slides that will be referred to during the
presentation can be found on 180 Degree Capital’s investor
relations website at
https://ir.180degreecapital.com/ir-calendar.
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 Degree Capital
and its holdings can be found on its website at
www.180degreecapital.com.
Press Contact:Daniel B. Wolfe180 Degree Capital
Corp.973-746-4500ir@180degreecapital.com
Mo ShafrothPeaks
Strategiesmshafroth@peaksstrategies.com
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 Degree Capital is not responsible for the contents of
third-party websites.
1. Cash including our holdings in money-market
cash sweep funds and the expected receipt of $1.3 million in April
2024 related to the sale of TARA Biosystems, Inc., to Valo Health
LLC.
2. Past performance is not an indication or
guarantee of future performance. Gross unrealized and realized
total returns of 180 Degree Capital's cash and securities of
publicly traded companies are compounded on a quarterly basis, and
intra-quarter cash flows from investments in or proceeds received
from privately held investments are treated as inflows or outflows
of cash available to invest or withdrawn, respectively, for the
purposes of this calculation. 180 Degree Capital is an internally
managed registered closed-end fund that has a 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, and 180 Degree Capital does not have an external manager
that is paid fees based on assets and/or returns. Please see 180
Degree Capital's filings with the SEC, including its 2023 Annual
Report on Form N-CSR for information on its expenses and expense
ratios.
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