EQS Equus Total Return Inc

 

___________________________________________

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 19, 2014

 

 

EQUUS TOTAL RETURN, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Delaware	814-00098	76-0345915
(State or Other Jurisdiction	(Commission File	(IRS Employer
Of Incorporation)	Number)	Identification No.)

 

Eight Greenway Plaza, Suite 930 Houston, Texas	77046
(Address of Principal Executive Offices)	(Zip Code)

 

Registrant’s telephone number, including area code: (713) 529-0900

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-k filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 8.01 Other Events.

 

On August 19, 2014, Equus Total Return, Inc. issued a press release announcing its net asset value for the quarter ended June 30, 2014. The text of the press release is included as Exhibit 99.1 to this Current Report and is incorporated herein by reference.

 

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

99.1 Press release issued on August 19, 2014 by Equus Total Return, Inc.

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

		Equus Total Return, Inc.
Date:  August 19, 2014		By:  /s/ Kenneth I. Denos
		Name: Kenneth I. Denos
		Title: Secretary

 

 

 

 

Exhibit 99.1

 

 

Contact:

 

Patricia Baronowski
Pristine Advisers, LLC
(631) 756-2486

EQUUS ANNOUNCES SECOND QUARTER NET ASSET VALUE

 

HOUSTON, TX – August 19, 2014 – Equus Total Return, Inc. (NYSE: EQS) (the “Fund” or “Equus”) reports net assets as of June 30, 2014, of $38.0 million, an increase of approximately $5.4 million since March 31, 2014. Net assets per share decreased to $3.00 as of June 30, 2014 from $3.09 as of March 31, 2014. Comparative data is summarized below (in thousands, except per share amounts):

 

As of the Quarter Ended	6/30/2014	3/31/2014	12/31/2013	9/30/2013	6/30/2013
Net assets	$38,041	$32,679	$33,217	$29,373	$30,167
Shares outstanding	12,674	10,562	10,562	10,562	10,562
Net assets per share	$3.00	$3.09	$3.14	$2.78	$2.86

 

The increase in aggregate net assets during the second quarter of 2014 was principally due to the following:

 

·

Announcement of Transformational Reorganization and Share Exchange. On May 15, 2014, Equus announced its intention to effect a transformational reorganization under the Investment Company Act of 1940. The reorganization also involved the sale by Equus of 2,112,000 shares of its common stock to MVC Capital, Inc. (NYSE: MVC), a business development company based in Purchase, NY that trades on the New York Stock Exchange (“MVC”), in exchange for the Fund receiving 395,839 shares of MVC. Under the terms of the reorganization, Equus intends to pursue a merger or consolidation with MVC, or a subsidiary of MVC, or one or more of MVC’s portfolio companies during the 12 month period following the announcement. Based on the closing trading price of the MVC shares at June 30, 2014, the acquisition of the MVC shares added approximately $5.1 million to the aggregate net assets of the Fund.

 

·

Increase in Fair Value of Holdings in PalletOne, Inc. PalletOne operates 17 pallet manufacturing facilities in 11 states and a large wood treating facility in Bartow, Florida. Our 18.7% shareholding in PalletOne increased in value from $0.3 million to $1.0 million during the quarter due to an improvement in the industry sector for packaging companies and continued revenue and earnings growth.

 

 

·

Increase in Fair Value of Holdings in Equus Energy, LLC. We formed Equus Energy in 2011 as a wholly-owned subsidiary of the Fund, to make investments in companies in the energy sector, with particular emphasis on income producing oil & gas properties. In December 2012, Equus Energy acquired working interests in 132 producing and non-producing oil and gas wells, including associated development rights of approximately 21,620 acres situated on 13 separate properties in Texas and Oklahoma. The value of our holdings in Equus Energy increased from $8.0 million to $8.8 million during the quarter, primarily due to increases in comparable transactions for mineral leases, continued improved economic conditions, industry outlook, pricing assumptions, as well as additional proved reserves from new drilling and recompletion activities.

 

Net assets per share decreased during the quarter, primarily due to (i) the costs incurred in connection with the share exchange with MVC described above, and (ii) as the Equus shares were sold at net asset value to MVC, the share exchange had a dilutive effect, represented by the difference between the market price of the MVC shares received and MVC’s net asset value per share.

 

About Equus

The Fund is a business development company that trades as a closed-end fund on the New York Stock Exchange, under the symbol "EQS". Additional information on the Fund may be obtained from the Fund’s website at www.equuscap.com.

 

This press release may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Fund’s current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the performance of the Fund, including our ability to achieve our expected financial and business objectives, our ability to execute our reorganization and complete the transactions contemplated thereby, the performance of our new investment in MVC and the other risks and uncertainties described in the Fund’s filings with the SEC. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. Except as required by law, the Fund undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by the Fund or any other person that the events or circumstances described in such statements are material.