180 Degree Capital Corp. Reports Net Asset Value Per Share of $2.44 as of June 30, 2017; Second Consecutive Quarter of Net A...
August 01 2017 - 4:59PM
180 Degree Capital Corp. (NASDAQ:TURN) (“180” and the “Company”),
today reported its financial results as of June 30, 2017. Key
results include:
• Increases in stock price, net asset value per
share (“NAV”) and stock price/NAV:
- Stock Price: $1.45 -> $1.62 (+11.7%)
- NAV: $2.43 -> $2.44 (+0.4%)
- First time in over five years that NAV increased in
two consecutive quarters
- Stock Price/NAV: 59.7% -> 66.4% (+670 bps)
• Completed restructuring:
- Subleased NYC office
- Substantially all costs of restructuring included in Q2 2017
NAV
• Progress converting private companies to public companies
and/or cash:
- Mersana Therapeutics, Inc., completed IPO on June 28, 2017
- Cash plus publicly traded assets: $19.1M -> $22.6M
(+18.3%)
• First new investments under new strategy:
- Synacor, Inc. (NASDAQ:SYNC)
- TheStreet, Inc. (NASDAQ:TST)
- USA Truck, Inc. (NASDAQ:USAK)
“We are pleased with the results from our first
full quarter operating as 180 Degree Capital Corp.,” said Kevin M.
Rendino, Chief Executive Officer. “Despite one-time net
restructuring expenses of $780,000, or $0.025 per share, we were
still able to grow NAV in the quarter. For the first time in
five years, NAV grew in consecutive quarters. On the expense
front, we are ahead of plan. Our quarterly run-rate of
expenses is now in the range we forecasted for 2018 and is half of
our historical 5-year average. It will now be far easier for
us to grow our NAV. Following on our January 13D/A filing on
Adesto Technologies Corporation, we continued implementing our new
strategy through establishing new positions in Synacor, Inc.,
TheStreet, Inc., and USA Truck, Inc. To complement our own
capital, starting this quarter, we will begin the process for
attempting to raise money in managed funds. We are also
making progress transitioning our private portfolio to cash and
publicly traded securities; Mersana Therapeutics Inc., completed an
IPO during the quarter led by JP Morgan.”
“This is a marathon, not a sprint. While
we are pleased with our start, our work is just beginning. As
I have said before, my primary goal as CEO of 180 is to
substantially increase our share price. We aren’t there yet,
but we are on our way."
Mr. Rendino and Daniel Wolfe, the Company’s
President, Chief Financial Officer and Portfolio Manager, will host
a conference call tomorrow, Wednesday, August 2, 2017, at 9am
Eastern Time, to discuss the results from the second quarter of
2017. The call can be accessed by phone at (641) 715-0632
passcode 415049 or via the web at
join.freeconferencecall.com/daniel8166. Additionally, slides
that will be referred to during the presentation can be found on
180’s investor relations website at ir.180degreecapital.com under
the menu option, Calendar of Events.
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.
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.
Press Contact:
Daniel B. Wolfe
180 Degree Capital Corp.
973-746-4500
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