Equus Announces Second Quarter Net Asset Value
August 15 2017 - 8:30AM
Equus Total Return, Inc. (NYSE:EQS) (the “Fund” or
“Equus”) reports net assets as of June 30, 2017, of $42.1 million,
an increase of approximately $0.7 million since March 31,
2017. Net asset value per share increased to $3.12 as of June
30, 2017 from $3.06 as of March 31, 2017. Comparative data is
summarized below (in thousands, except per share amounts):
As of
the Quarter Ended |
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 |
Net
assets |
$ |
42,122 |
$ |
41,422 |
$ |
42,740 |
$ |
41,506 |
$ |
39,617 |
Shares outstanding |
|
13,518 |
|
13,518 |
|
12,674 |
|
12,674 |
|
12,674 |
Net
assets per share |
$ |
3.12 |
$ |
3.06 |
$ |
3.37 |
$ |
3.27 |
$ |
3.13 |
The following is a summary of significant events
that occurred during the second quarter of 2017:
- Increase in the Value of MVC Capital
Shares. The price of MVC Capital, Inc.’s (“MVC”)
common stock increased from $8.99 per share on March 31, 2017 to
$9.86 per share on June 30, 2017. In addition to the 475,956
MVC shares held by Equus at March 31, 2017, the Fund received 7,134
MVC shares as a dividend during the second quarter of 2017. The
receipt of share dividends and increase in the MVC share price led
to a corresponding increase in the fair value of this holding from
$4.3 million to $4.8 million during the second quarter of
2017.
- Full Repayment of Biogenic Reagents
Note. On June 7, 2017, Equus received full payment
of its senior secured promissory note (“Note”) issued by Biogenic
Reagents, LLC (“Biogenic”), a developer and producer of high value
carbon products from renewable biomass. The Note was issued
to Equus by Biogenic on January 29, 2016 in the original principal
amount of $2.0 million as a short-term bridge loan from Equus to
enable Biogenic to further certain research and development efforts
and provide working capital. Repayment of the Note was made
in connection with the liquidation of Biogenic’s assets, with Equus
receiving $2.4 million in cash, consisting of the original
principal amount of the Note, together with approximately $0.4
million in interest as accrued thereon.
- Receipt of Termination Fee Relating to Agreement to
Acquire U.S. Gas & Electric. On April 24, 2017,
Equus entered into an Agreement and Plan of Merger (“Merger
Agreement”) with ETR Merger Sub, Inc., a newly-formed wholly-owned
subsidiary of Equus, certain shareholders of U.S. Gas &
Electric, Inc., a retail and commercial energy services provider
(“USG&E”), and MVC as a selling shareholder of USG&E and as
representative of the selling USG&E shareholders. On May
30, 2017, USG&E and MVC notified Equus that they had accepted a
proposal from Crius Energy Trust, that was considered by the
respective boards of directors of USG&E and MVC to constitute a
“Superior Proposal” (as such term is defined in the Merger
Agreement) to the terms and conditions of the Merger Agreement,
and, accordingly, provided Equus with a notice of termination
pursuant to the Merger Agreement. Further, pursuant to the Merger
Agreement, USG&E paid Equus a termination fee of $2.5
million.
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, 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.
Contact:
Patricia Baronowski
Pristine Advisers, LLC
(631) 756-2486
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