Montclair, N.J., Nov. 09, 2021 (GLOBE NEWSWIRE) — 180 Degree Capital Corp. (NASDAQ: TURN) (“180” and the “Company”), today announced its financial results as of September 30, 2021, and other developments beginning in the fourth quarter of 2021. The Company also issued a letter to shareholders which can be viewed at https://ir.180degreecapital.com/financial-results.
“While the third quarter of 2021 presented its fair share of challenges for our public investments, our private holdings appreciated in value,” said Kevin M. Rendino, Managing Director of 180. “Overall, we completed the quarter with almost equal cash and public company securities Our public markets investment strategy generated a gross total return of -6.6% in the third quarter of 2021.1 Our separately managed account (SMA) also declined, with a gross total return of -10.2%. If this were the end of 2021, we would generate approximately $1.6 million in deferred interest from the SMA, and the net total return for the three quarters of 2021 for the SMA would be +11.0%.2 I remind investors that this potential deferred interest is not included in our reported net asset value at the end of the third quarter of 2021. We ended the quarter with approximately $112.1 million.3 total assets under management in 180 and our SMA available to be deployed in our public markets investment strategy.”
“As we mentioned last quarter, 180 were seeking SPAC sponsorship opportunities with whom we believe are value-added partners or leadership teams who have demonstrated basic competency in finding merger candidates. “, said Daniel B. Wolfe, president of 180. “The first of these efforts is Parabellum Acquisition Corp. (PRBM). million dollars. We are delighted to be working with PRBM founders Narbeh Derhacobian and Ron Shelton, the former CEO and CFO of Adesto Technologies Corporation, on this effort. With the IPO behind us, PRBM is now at the search for target companies. The interests of 180 PRBMs are currently held by the sponsor, Parabellum Acquisition Holdings, LLC. The fair value of our interests in The PRBM at the end of the third quarter of 2021 was approximately $6.3 million on a cost basis of approximately $2.7 million. »
“The fourth quarter is off to a good start,” added Rendino. “As of the close of trading on November 9, 2021, cash and securities of 180 publicly traded companies stood at $79.1 million, or $7.63 per share, which is higher than our closing price. of $7.2024 and does not include potential carried interest from our SMA at the end of 2021. If the year ended today, we would receive $2.4 million in carried interest. Management has purchased 52,585 shares of TURN with after-tax dollars during the third quarter of 2021. As you have seen almost every quarter, if the valuation gap does not close, our management team will continue to be buyers on the free market.”
The table below summarizes 180’s performance over periods through the end of Q3 2021:
|Trimester||YTD||1 year||3 years||Creation to date|
|Q3 2021||Q4 2020-Q3 2021||Q3 2020- Q3 2021||Q3 2018- Q3 2021||Q4 2016-Q3 2021|
|Gross total return of the TURN public portfolio (excluding deferred interest SMA)||-6.6||%||27.0||%||33.7||%||113.9||%||346.5||%|
|Gross total return of the TURN public portfolio (including deferred interest SMA)||-8.2||%||29.3||%||41.7||%||126.6||%||373.0||%|
|Change of NAV||-2.9||%||11.7||%||19.2||%||23.0||%||47.7||%|
|Change in share price||-10.0||%||8.9||%||27.9||%||11.3||%||75.1||%|
|Russell Microcap Index||-5.0||%||22.6||%||61.0||%||41.2||%||78.6||%|
|Russell Microcap Value Index||-1.9||%||32.3||%||76.8||%||39.5||%||70.4||%|
Mr. Rendino and Mr. Wolfe will hold a conference call tomorrow, Wednesday, November 10, 2021, at 9:00 a.m. EST to discuss third quarter 2021 results and developments during the fourth quarter of 2021. The call is accessible by phone at (609) 746-1082 passcode 415049 or via the web at https://www.freeconferencecall.com/wall/180degreecapital. Additionally, the slides that will be referenced during the presentation can be viewed on 180’s Investor Relations website at https://ir.180degreecapital.com/ir-calendar.
About 180 Degree Capital Corp.
180 Degree Capital Corp. is an exchange-listed, registered closed-end fund that focuses on investing in and providing value-added assistance through constructive activism to what we believe are small, significantly under-invested publicly-listed companies. assessed that have significant turnaround potential. Our goal is for the outcome of our constructive activism to lead to a reversal in the direction of the share price of these investee companies, i.e. a 180 degree turn. Detailed information about 180 and its holdings is available on its website at www.180degreecapital.com.
Daniel B. Wolfe
180 Degree Capital Corp.
This press release may contain forward-looking statements regarding future events. These forward-looking statements are subject to the uncertainties inherent in predicting future results and conditions. These statements reflect the current beliefs of the Company, 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 filings with the Securities and Exchange Commission for a more detailed discussion of the risks and uncertainties associated with the company’s business and other important factors that could affect the company’s actual results. Except as 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 www.180degreecapital.com website has been provided for convenience, and the information contained on this website is not incorporated by reference into this press release. 180 is not responsible for the content of third party websites.
1 Past performance does not predict or guarantee future performance. Gross unrealized and realized total returns of 180 cash and securities of publicly traded companies are compounded on a quarterly basis, and intra-quarter cash flows from investments or proceeds received from private investments are treated as cash inflows or outflows available to invest or respectively withdrawn for the purposes of this calculation. 180 is an internally managed registered closed-end fund that holds a portion of its assets in legacy private companies that are fair valued on a quarterly basis by the valuation committee of its board of directors. 180 is an internally managed registered closed-end fund and does not have an external manager who charges fees based on assets and/or performance. Please see 180’s filings with the SEC, including its 2020 Annual Report on Form N-CSR and its 2021 Semi-Annual Report on Form N-CSRS for more information on its expenses and expense ratios.
2 Deferred interest is due from the separately managed account based on annual performance and is not accrued until year-end performance is determined or otherwise payable. Actual deferred interest at the end of 2021 could be materially different.
3 Cash, net of unsettled trades.