Equus Announces First Quarter Net Asset Value
14 Maio 2021 - 5:43PM
Equus Total Return, Inc. (NYSE: EQS) (“Equus” or
the “Company”) reports net assets as of March 31, 2021, of $34.1
million, an increase of approximately $0.3 million since December
31, 2020. Net asset value per share increased to $2.52 as of March
31, 2021 from $2.50 as of December 31, 2020. Comparative data is
summarized below (in thousands, except per share
amounts):
As of the Quarter Ended |
3/31/2021 |
12/31/2020 |
9/30/2020 |
6/30/2020 |
3/31/2020 |
Net assets |
$34,075 |
$33,777 |
$37,431 |
$41,469 |
$38,895 |
Shares outstanding |
13,518 |
13,518 |
13,518 |
13,518 |
13,518 |
Net assets per share |
$2.52 |
$2.50 |
$2.77 |
$3.07 |
$2.88 |
The increase in overall net asset value during
the first quarter of 2021 was due to an increase in the fair value
of Equus Energy, LLC, from $7.0 million to $8.5 million. This was
due to price increases for crude and natural gas during the
quarter, and recent comparable transactions in the Permian Basin
where Equus Energy holds its working interests. A number of
acquisitions that were completed in late 2020 and the first quarter
of 2021 were concentrated in the Permian Basin and were made at
imputed acreage values considerably in excess of values ascribed to
such acreage in the past several years.
Among the various leasehold rights held by Equus
Energy is a 50% working interest in 2,400 acres in the Permian
Basin known as the Conger Field, as well as working interests of
7.5% and 2.5% in the Burnell and North Pettus Units, respectively,
which collectively comprise approximately 13,000 acres located in
the area known as the ‘Eagle Ford Shale’ play. The Company received
advice and assistance from a third-party valuation firm to support
its determination of the fair value of this investment.
Significant Events During the Quarter
- Authorization to Withdraw
BDC Election— On January 20, 2021, holders of a majority
of the Company’s outstanding common stock authorized the Equus
Board of Directors, on or before August 31, 2021, to cause the
Company’s withdrawal of its election to be classified as a business
development company (“BDC”) under the Investment Company Act of
1940 (“1940 Act”). This authorization is a consequence of the
Company’s expressed intent to transform Equus into an operating
company or a permanent capital vehicle instead of a BDC regulated
under the 1940 Act.
- Increase in Authorized
Shares—Also on January 20, 2021, holders of a majority of
the outstanding common stock of Equus approved the restatement of
its Certificate of Incorporation to increase the number of the
Company’s authorized shares of common stock from 50,000,000 to
100,000,000, and the number of the Company’s authorized shares of
preferred stock from 5,000,000 to 10,000,000. The increase is
intended to help facilitate the transformation of Equus into an
operating company and provide sufficient authorized shares to
evaluate larger business concerns as possible acquisition or merger
candidates.
About Equus
The Company 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 Company may
be obtained from the Company’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 Company’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 Company, including
our ability to achieve our expected financial and business
objectives, and the other risks and uncertainties described in the
Company’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 Company
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 Company or any
other person that the events or circumstances described in such
statements are material.
Contact:
Patricia Baronowski Pristine Advisers, LLC(631) 756-2486
Equus Total Return (NYSE:EQS)
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