180 Degree Capital Corp. Reports $6.22 Preliminary Net Asset Value Per Share, -1.6% YTD, and Liquid Public Securities and Cash of 87% of Net Assets, as of June 30, 2023
20 Julho 2023 - 10:00AM
180 Degree Capital Corp. (NASDAQ:TURN) (“180” and the “Company”),
today reported preliminary results as of June 30, 2023.
“We decided to pre-announce our net asset value
per share (“NAV”) for Q2 2023 due primarily to the weakness in
TURN’s stock and the disconnect between share price and NAV,” said
Kevin M. Rendino, Chief Executive Officer of 180. “While we are
frustrated with our performance in Q2 2023, we used the quarter to
position TURN to benefit should certain catalysts of our holdings
occur down the road. Our current belief is that some of these
catalysts could materialize over the ensuing months. These
catalysts primarily center around removal of capital structure
overhangs through refinancing of debt, completion of strategic
transactions, and/or certain companies demonstrating better
corporate governance and alignment with all stakeholders. We
currently believe that these catalysts, if they occur, could result
in material appreciation of the value of our holdings in these
companies in line with our initial investment target of at least
100%. We continue to use our constructive activism to drive these
events to completion where possible.”
“Our underperformance this quarter following
outperformance last quarter was primarily due to declines in value
of certain of our larger holdings and led to a gross total return
of our public investments of -5.8% versus +5.3% return for the
Russell Microcap Index,” noted Daniel B. Wolfe, President of 180.
“Company specific events at Intevac, Inc. (IVAC) and continued
weakness in the price per share of Comscore, Inc. (SCOR)—even with
significant improvements in its business—were large contributors to
declines in our NAV. Strength in our holdings of Commercial Vehicle
Group, Inc. (CVGI) and Potbelly Corporation (PBPB), coupled with
renewed interest in D-Wave Quantum, Inc. (QBTS), due to its
position in enabling artificial intelligence platforms, were not
enough to offset our declining positions. We ended the quarter with
liquid public investments representing nearly 90% of our net
assets. Management continues to believe that TURN’s stock does not
reflect the appropriate value of the company and its holdings. As
such management continued to purchase TURN in the open market in
the quarter, in addition to the significant repurchase by TURN of
its stock in May 2023. We believe there is no justification,
despite being 280 basis points behind the Russell Microcap Index
YTD, that TURN’s stock price warrants an almost 30% discount to our
NAV at the end of Q2 2023. Since our inception, we have generated a
gross total return of +223.6% versus +47.1% for the Russell
Microcap Index.”
“Q3 2023 has started off positively for TURN and
its holdings,” added Mr. Rendino. “We run a highly concentrated
portfolio and our returns will always be dependent on the companies
we own and not only what happens with market indices. While this
period has been maddening and difficult to wade through, we believe
the inherent value of the totality of our holdings can lead to a
material increase in our NAV over time. We look forward to
discussing these results with our shareholders and other interested
parties on our Q2 2023 quarterly update call that we currently
expect to hold in early-to-mid-August 2023.”
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.
Press Contact:Daniel B. Wolfe180 Degree Capital
Corp.973-746-4500ir@180degreecapital.com
Mo ShafrothPeaks
Strategiesmshafroth@peaksstrategies.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.
Note: Cash amounts included in this release are
net of unsettled trades.1. NAV as of the end of Q3 2023 may be
materially different than NAV as of the date of this release.
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