SuRo Capital Corp. (“SuRo Capital”, the “Company”, “we”, “us”, and “our”) (Nasdaq: SSSS) today announced its financial results for the quarter ended March 31, 2022. Net assets totaled approximately $380.7 million, or $12.22 per share, at March 31, 2022, inclusive of $0.11 per share in dividends declared during the first quarter, as compared to $11.72 per share at December 31, 2021 and $18.01 per share at March 31, 2021.

“Despite significant declines and volatility in the public markets during the quarter, SuRo Capital achieved its highest dividend-adjusted NAV per share,” said Mark Klein, Chairman and Chief Executive Officer of SuRo Capital.

Mr. Klein added, “As we have consistently demonstrated, SuRo Capital is committed to initiatives that enhance shareholder value and we believe the market is currently undervaluing our portfolio. Accordingly, in March, our Board of Directors authorized an additional $15.0 million for share repurchases. Since that increase, we have repurchased over 580,000 shares for approximately $5.0 million. Given the significant discount at which our stock is trading compared to net asset value, coupled with the extreme market volatility, we determined the current continuation of the Share Repurchase Program to be an efficient and accretive deployment of capital.”

Mr. Klein concluded, “Due to the ongoing dislocation in the private and public markets, we continued to take a more conservative approach to both deploying capital and exiting public investments. While we continue to see consistently strong deal flow, we maintain a steady focus on making compelling investments in high-growth companies at appropriate valuations. With over $170.0 million of investable funds, we believe we are advantageously positioned to deploy our capital as the public markets continue to reprice.”

Investment Portfolio as of March 31, 2022

At March 31, 2022, SuRo Capital held positions in 38 portfolio companies with an aggregate fair value of approximately $280.8 million. The Company’s top five portfolio company investments accounted for approximately 63% of the total portfolio at fair value as of March 31, 2022.

Top Five Investments as of March 31, 2022

Portfolio Company ($ in millions) Cost Basis Fair Value % of Total Portfolio
Course Hero, Inc. $ 15.0 $ 76.8 27.4 %
Forge Global, Inc.   2.5   62.7 22.3  
Blink Health, Inc.   15.0   13.8 4.9  
Aspiration Partners, Inc.   1.3   11.5 4.1  
Stormwind, LLC   6.4   11.5 4.1  
Total $ 40.2 $ 176.3 62.8 %

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Note: Total may not sum due to rounding.

First Quarter 2022 Investment Portfolio Activity

During the three months ended March 31, 2022, SuRo Capital exited or received proceeds from the following investments:

Portfolio Company TransactionDate SharesSold Average NetShare Price(1) NetProceeds RealizedGain(2)
NewLake Capital Partners, Inc.(3) Various 27,352 $27.76 $0.8 million $0.2 million
Rover Group, Inc.(4) 1/31/2022 42,744 $6.52 $0.3 million $0.2 million
Residential Homes For Rent, LLC (d/b/a Second Avenue)(5) Various N/A N/A $0.3 million $-

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(1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s), if applicable.(2) Realized gain does not include adjustments to amounts held in escrow receivable.(3) As of March 31, 2022, SuRo Capital held 251,119 remaining NewLake Capital Partners, Inc. common shares.(4) As of March 31, 2022, SuRo Capital held 795,637 remaining Rover Group, Inc. common shares.(5) During the three months ended March 31, 2022, approximately $0.3 million was received from Residential Homes for Rent, LLC (d/b/a Second Avenue) related to the 15% term loan due December 23, 2023. Of the proceeds received, approximately $0.2 million repaid a portion of the outstanding principal and the remaining was attributed to interest.Subsequent to quarter-end through May 4, 2022, SuRo Capital funded the following follow-on investment:

Portfolio Company Investment Transaction Date Amount
Shogun Enterprises, Inc. Convertible Note 5/2/2022 $0.5 million

Subsequent to quarter-end through May 4, 2022, SuRo Capital exited or received proceeds from the following investments:

Portfolio Company TransactionDate SharesSold Average NetShare Price(1) Net Proceeds RealizedGain
Rover Group, Inc.(2) Various 179,977 $6.13 $1.1 million $0.6 million
Residential Homes For Rent, LLC (d/b/a Second Avenue)(3) 4/22/2022 N/A N/A $0.1 million $-

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(1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s), if applicable. (2) As of May 4, 2022, SuRo Capital held 615,660 remaining Rover Group, Inc. common shares.(3) Subsequent to March 31, 2022, $0.1 million was received from Residential Homes for Rent, LLC (d/b/a Second Avenue) related to the 15% term loan due December 23, 2023. Of the proceeds received, $0.1 million repaid a portion of the outstanding principal and the remaining proceeds were attributed to interest.First Quarter 2022 Financial Results

  Quarter EndedMarch 31, 2022 Quarter EndedMarch 31, 2021
$ in millions per share(1) $ in millions per share(1)
         
Net investment loss $ (4.2 ) $ (0.14 ) $ (2.8 ) $ (0.14 )
         
Net realized gain on investments   3.1     0.10     112.2     5.47  
         
Net change in unrealized appreciation/(depreciation) of investments   21.6     0.69     (1.3 )   (0.06 )
         
Net change in net assets resulting from operations – basic(2) $ 20.5   $ 0.66   $ 108.0   $ 5.27  
         
Dividends declared   (3.4 )   (0.11 )   (11.0 )   (0.50 )
         
Issuance of common stock from public offering   0.2     0.01     -     -  
         
Issuance of common stock from conversion of 4.75% Convertible Notesdue 2023   -     -     37.3     (1.91 )
         
Repurchase of common stock   (1.4 )   (0.06 )   -     -  
         
Stock-based compensation   (0.0 )   0.01     0.1     0.01  
         
Increase/(decrease) in net asset value(2) $ 15.9   $ 0.50   $ 134.4   $ 2.87  

__________________(1) Based on weighted-average number of shares outstanding for the relevant period.(2) Totals may not sum due to rounding.

Weighted-average common basic shares outstanding were approximately 31.2 million and 20.5 million for the quarters ended March 31, 2022 and 2021, respectively. As of March 31, 2022, there were 31,164,443 shares of the Company’s common stock outstanding.

SuRo Capital’s liquid assets were approximately $189.6 million as of March 31, 2022, consisting of cash and securities of publicly traded portfolio companies not subject to lock-up restrictions at quarter end.

2022 Dividend Declarations

On March 8, 2022, SuRo Capital’s Board of Directors declared a dividend of $0.11 per share, paid in cash on April 15, 2022, to the Company’s common stockholders of record as of the close of business on March 25, 2022.

Share Repurchase Program

Since inception of the Share Repurchase Program in August 2017, SuRo Capital has repurchased over 5.4 million shares of its common stock for an aggregate purchase price of approximately $35.3 million.

On March 13, 2022, the Company’s Board of Directors authorized a $15 million expansion of the Share Repurchase Program to $55.0 million. Through March 31, 2022, under the Share Repurchase Program, the Company repurchased 153,517 shares of its common stock for approximately $1.4 million. Subsequent to quarter end, the Company repurchased 431,134 shares of its common stock for approximately $3.7 million. The dollar value of shares that may yet be purchased by the Company under the Share Repurchase Program is approximately $19.6 million. The Share Repurchase Program is authorized through October 31, 2022.

Under the Share Repurchase Program, the Company may repurchase its outstanding common stock in the open market provided it complies with the prohibitions under its insider trading policies and procedures and the applicable provisions of the Investment Company Act of 1940, as amended, and the Securities Exchange Act of 1934, as amended.

Conference Call and Webcast

Management will hold a conference call and webcast for investors at 2:00 p.m. PT (5:00 p.m. ET). The conference call access number for U.S. participants is 323-701-0160, and the conference call access number for participants outside the U.S. is 800-289-0720. The conference ID number for both access numbers is 5586089. Additionally, interested parties can listen to a live webcast of the call from the "Investor Relations" section of SuRo Capital’s website at www.surocap.com. An archived replay of the webcast will also be available for 12 months following the live presentation.

A replay of the conference call may be accessed until 5:00 p.m. PT (8:00 p.m. ET) on May 11, 2022 by dialing 888-203-1112 (U.S.) or +1 719-457-0820 (International) and using conference ID number 5586089.

Forward-Looking Statements

Statements included herein, including statements regarding SuRo Capital's beliefs, expectations, intentions, or strategies for the future, may constitute "forward-looking statements". SuRo Capital 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, including the impact of the COVID-19 pandemic and any market volatility that may be detrimental to our business, our portfolio companies, our industry, and the global economy, 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 SuRo Capital's actual results to differ from management's current expectations are contained in SuRo Capital's filings with the Securities and Exchange Commission. SuRo Capital undertakes no obligation to update any forward-looking statement to reflect events or circumstances that may arise after the date of this press release.

About SuRo Capital Corp.

SuRo 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. SuRo Capital is headquartered in New York, NY and has offices in San Francisco, CA. Connect with the company on Twitter, LinkedIn, and at www.surocap.com.

Contact

SuRo Capital Corp.(212) 931-6331IR@surocap.com

Media Contact

Bill DouglassGotham Communications, LLCCommunications@surocap.com

       
       
  March 31, 2022   December 31, 2021
ASSETS      
Investments at fair value:      
Non-controlled/non-affiliate investments (cost of $145,417,242 and $146,360,300, respectively) $ 252,569,218     $ 231,768,290  
Non-controlled/affiliate investments (cost of $41,211,183 and $41,211,183, respectively)   14,319,986       14,609,089  
Controlled investments (cost of $19,883,894 and $19,883,894, respectively)   13,888,874       13,758,874  
Total Investments (cost of $206,512,319 and $207,455,377, respectively)   280,778,078       260,136,253  
Cash   172,839,141       198,437,078  
Proceeds receivable         52,493  
Escrow proceeds receivable   4,577,518       2,046,645  
Interest and dividends receivable   87,815       83,655  
Deferred financing costs   606,607       621,719  
Prepaid expenses and other assets(1)   790,211       937,984  
Total Assets   459,679,370       462,315,827  
LIABILITIES      
Accounts payable and accrued expenses(1)   1,649,388       875,047  
Accrued interest payable         175,000  
Dividends payable   3,751,013       23,390,048  
Payable for securities purchased   460,048        
6.00% Notes due December 30, 2026(2)   73,117,394       73,029,108  
Total Liabilities   78,977,843       97,469,203  
       
Net Assets $ 380,701,527     $ 364,846,624  
NET ASSETS      
Common stock, par value $0.01 per share (100,000,000 authorized; 31,164,443 and 31,118,556 issued and outstanding, respectively) $ 311,644     $ 311,185  
Paid-in capital in excess of par   348,919,222       350,079,409  
Accumulated net investment loss   (54,349,302 )     (50,124,597 )
Accumulated net realized gain on investments, net of distributions   11,554,193       11,899,742  
Accumulated net unrealized appreciation of investments   74,265,770       52,680,885  
Net Assets $ 380,701,527     $ 364,846,624  
Net Asset Value Per Share $ 12.22     $ 11.72  

__________________________________________________

(1) This balance includes a right of use asset and corresponding operating lease liability, respectively. (2) As of March 31, 2022, the 6.00% Notes due December 30, 2026 (effective interest rate of 6.53%) had a face value $75,000,000. As of December 31, 2021, the 6.00% Notes due December 30, 2026 (effective interest rate of 6.13%) had a face value $75,000,000.

   
   
  Three Months Ended March 31,
    2022       2021  
INVESTMENT INCOME      
Non-controlled/non-affiliate investments:      
Interest income $ 162,455     $ 166,845  
Dividend income   130,645       21,875  
Non-controlled/affiliate investments:    
Dividend income         102,632  
Controlled investments:    
Interest income   290,000        
Total Investment Income   583,100       291,352  
OPERATING EXPENSES    
Compensation expense   1,860,702       1,293,310  
Directors’ fees   160,565       111,250  
Professional fees   1,272,713       973,159  
Interest expense   1,200,786       504,793  
Income tax expense   2,050       2,025  
Other expenses   310,989       241,133  
Total Operating Expenses   4,807,805       3,125,670  
Net Investment Loss   (4,224,705 )     (2,834,318 )
Realized Gain on Investments:  
Non-controlled/non-affiliated investments   3,096,275       112,152,518  
Net Realized Gain on Investments   3,096,275       112,152,518  
Change in Unrealized Appreciation/(Depreciation) of Investments:    
Non-controlled/non-affiliated investments   21,743,987       (3,265,307 )
Non-controlled/affiliate investments   (289,102 )     1,844,470  
Controlled investments   130,000       105,000  
Net Change in Unrealized Appreciation/(Depreciation) of Investments   21,584,885       (1,315,837 )
Net Change in Net Assets Resulting from Operations $ 20,456,455     $ 108,002,363  
Net Change in Net Assets Resulting from Operations per Common Share:    
Basic $ 0.66     $ 5.27  
Diluted(1) $ 0.66     $ 4.50  
Weighted-Average Common Shares Outstanding  
Basic   31,228,046       20,486,621  
Diluted(1)   31,228,046       24,123,339  

__________________(1) As of March 31, 2022, there were no potentially dilutive securities outstanding.

   
   
Three Months Ended March 31,
    2022       2021  
Per Basic Share Data      
Net asset value at beginning of the year $ 11.72     $ 15.14  
Net investment loss(1)   (0.14 )     (0.14 )
Net realized gain on investments(1)   0.10       5.47  
Net change in unrealized appreciation/(depreciation) of investments(1)   0.69       (0.06 )
Dividends declared   (0.11 )     (0.50 )
Issuance of common stock from public offering(1)   0.01        
Issuance of common stock from conversion of 4.75% Convertible Notes due 2023(1)         (1.91 )
Repurchase of common stock(1)   (0.06 )      
Stock-based compensation(1)   0.01       0.01  
Net asset value at end of period $ 12.22     $ 18.01  
Per share market value at end of period $ 8.63     $ 13.55  
Total return based on market value(2)   (31.72 )%     7.28 %
Total return based on net asset value(2)   5.03 %     18.96 %
Shares outstanding at end of period   31,164,443       24,205,216  
Ratios/Supplemental Data:  
Net assets at end of period $ 380,701,527     $ 435,961,621  
Average net assets $ 364,015,960     $ 312,796,110  
Ratio of gross operating expenses to average net assets(3)   5.39 %     4.05 %
Ratio of net operating expenses to average net assets(3)   5.39 %     4.05 %
Ratio of net investment loss to average net assets(3)   (4.73 )%     (3.67 )%
Portfolio Turnover Ratio   %     3.41 %

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(1) Based on weighted-average number of shares outstanding for the relevant period.(2) Total return based on market value is based upon the change in market price per share between the opening and ending market values per share in the period, adjusted for dividends and equity issuances. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share in the period, adjusted for dividends and equity issuances. (3) Because the ratios are calculated for the Company’s common stock taken as a whole, an individual investor’s ratios may vary from these ratios.

 

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