NEW YORK, Nov. 13, 2017 /PRNewswire/ -- TheStreet,
Inc. (NASDAQ: TST), a leading financial news and
information provider, announced today that on November 10, 2017 it exchanged all shares of
Series B Preferred Stock held by Technology Crossover Ventures
("TCV") for 6,000,000 shares of the Company's Common Stock and
$20,000,000 cash. The retirement of
the Series B Preferred Stock removes, among other rights of the
holder and restrictions on the Company, a $55 million liquidation preference previously
held by TCV.
The Company also announced that on November 10, 2017, it closed a common stock PIPE
with 180 Degree Capital Corp. whereby the Company sold 7,136,363
shares of Common Stock for a total of $7,849,999.30, or, $1.10 per share. The closing bid price of the
Company's Common Stock on November 9,
2017, the day prior to signing the financing agreements, was
$0.92 per share. The proceeds from
the private placement were used by the Company, in part, to fund
the consideration paid to TCV.
"These transactions represent another important step in the
turnaround we started last year by simplifying our capital
structure and cementing our relationship with two key strategic
investors", said David Callaway,
President and CEO of TheStreet. "TCV has been an important
supporter of TheStreet for over a decade and their conversion to
common stock serves as a strong vote of confidence in the
Company's prospects. We are also delighted to welcome to TheStreet
family, Kevin Rendino and 180
Capital, who have been shareholders of TheStreet since the second
quarter of 2017 when Kevin became their CEO," Mr. Callaway
continued.
In connection with the private placement, Kevin Rendino, CEO of 180 Capital, joined the
Board of Directors of TheStreet. With the addition of Mr. Rendino,
an independent director, the Board now has eight directors, six
whom are independent, a substantial majority of the Board.
Mr. Rendino, age 51, is a financial services leader with three
decades of Wall Street experience and expertise in capital markets,
value investing and global equity markets. For over twenty
years (1988 - 2012), Kevin was Managing Director and a Large Cap
Value Manager, overseeing 11 funds and $13B in assets. Kevin was a member of Blackrock's
Leadership Committee and a frequent contributor to CNBC, Bloomberg
TV, Fox Business, The New York Times and The Wall Street Journal.
From 2012 to 2016, Kevin served as Chairman and Chief Executive
Officer of RGJ Capital, where he led a Graham and Dodd approach to
value investing. Since March of 2017, Mr. Rendino, has
served as Chairman and Chief Executive Officer of 180 Degree
Capital, a publicly traded investment management company. In
1988, Mr. Rendino graduated from the Carroll School of Management
at Boston College (B.S.).
"The retirement of the preferred stock is a seminal moment that
clears the path to enhance value for all common shareholders. The
turnaround at TST is well underway. We believe the future for
TST and its shareholders is bright, and we are excited to have the
opportunity to be a part of it," said Kevin
Rendino, Chairman and CEO of 180 Degree Capital
Corp.
"This is a watershed moment for TheStreet and its shareholders,
and a giant step in the turnaround efforts we began 20 months ago,"
concluded Larry Kramer, Chairman of
the Board of TheStreet.
Lake Street Capital Markets served as the Company's exclusive
placement agent for the private placement with 180 Degree Capital
and as the Company's lead financial adviser on the exchange of
TCV's Series B Preferred Stock. B. Riley FBR, Inc. served as a
financial advisor on the TCV exchange.
About TheStreet, Inc.
TheStreet, Inc. (NASDAQ: TST, www.t.st) is a leading
financial news and information provider to investors and
institutions worldwide. The Company's namesake
brand, TheStreet (www.thestreet.com), is in its third
decade of producing unbiased business news and market analysis
for individual investors. The Company's portfolio of institutional
brands includes The Deal (www.thedeal.com), which provides
actionable, intraday coverage of mergers, acquisitions and all
other changes in corporate control; BoardEx (www.boardex.com), a
relationship mapping service of corporate directors and officers;
and RateWatch (www.rate-watch.com), which supplies rate and fee
data from banks and credit unions across the U.S.
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.
Contact: Eric Lundberg,
Chief Financial Officer, TheStreet, Inc., ir at thestreet.com;
John Evans, Investor Relations, PIR
Communications, 415-309-0230, ir at thestreet.com
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SOURCE TheStreet, Inc.