180 Degree Capital Corp. announces net asset value per share of $9.81, down 8% from the prior quarter, and cash and securities of public and related companies of $64.2 million, or $6.19 per share, as of March 31, 2022

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180 Degree Capital Corp.

Pro forma public company cash and securities, including proceeds from sale of Petra Pharma Milestones and first payment from TARA Biosystems of $76.6 million, or $7.38 per share

MONTCLAIR, NJ, May 11, 2022 (GLOBE NEWSWIRE) — 180 Degree Capital Corp. (NASDAQ: TURN) (“180” and the “Company”), today announced its financial results as of March 31, 2022 and additional developments beginning in the second quarter of 2022. The Company has also issued a letter to shareholders which may be viewed at https://ir.180degreecapital.com/financial-results.

“This quarter was quite the opposite for us compared to the prior quarter,” said Kevin M. Rendino, Managing Director of 180. “We ended the quarter with our net asset value down 8% and total return gross in our public and linked portfolio of -14.8%.Our separately managed account declined by a similar level during the quarter.This is not the first time we have suffered a decline in 21 quarters, and it likely won’t be the last. We believe some of our holdings were down and deserved to be down, while others were down despite good news. Please see our letter to shareholders for our specific analysis of each Weakness in our public and related portfolio was partially offset by our legacy private portfolio which increased in value by $3.3 million.

“We mentioned last quarter that we were encouraged by the possibility of monetizing certain legacy private investments in 2022,” said Daniel B. Wolfe, president of 180. “The sale of our potential future milestone payments from the acquisition of Petra Pharma Corporation by Eli Lilly and Company for $12.3 million and the acquisition of TARA Biosystems, Inc., by Valo Health, LLC are positive steps in this effort Pro forma cash and securities of 180 companies including proceeds from the sale of Petra Pharma milestones and TARA Biosystems’ first payment of $76.6 million, or $7.38 per share Additional monetizations in 2022 remain possible, including D-Wave Systems, Inc. in connection with its intention to become a publicly traded company through a merger with DPCM Capital, Inc., (“XPOA”), a special purpose acquisition company (“SPAC”) If the transaction is concluded as agreed ac ally by each party, 180 would own approximately 900,000 common shares of the combined company. Should this listing occur, 180’s remaining private portfolio would have only one material position, AgBiome, LLC, and approximately 83% of 180’s pro forma cash and investment assets would be in cash and government securities. and related.

“While it’s never fun to experience nasty sell-offs, sell-offs like the ones we’re currently experiencing provide opportunities to find the stocks we believe have huge upside potential,” Rendino added. “We intentionally manage a concentrated portfolio of small capitalization companies. Of course, with the upside potential comes times like ours where you see the risks associated with running a concentrated portfolio. The microcap market is filled with inefficiencies and asymmetric risk/reward characteristics. We are undeterred in our aim to find investments in individual companies that we believe have the potential to generate gross returns of at least 100% over a three-year period. Our permanent capital is a great strength and allows us to take advantage of the current dislocation as we spend our time researching companies rather than managing takeovers.

The table below summarizes 180’s performance over periods through the end of Q1 20221:

Trimester

1 year

3 years

5 years

From creation to
Date

Q1 2022

Q1 2021-
Q1 2022

Q1 2019-
Q1 2022

Q1 2017-
Q1 2022

Q4 2016-
Q1 2022

Gross total return of the TURN public portfolio (excluding deferred interest SMA)

-14.8

%

-10.5

%

96.2

%

235.7

%

304.3

%

Gross total return of the TURN public portfolio (including deferred interest SMA)

-14.8

%

-8.2

%

109.4

%

257.8

%

330.9

%

Change of NAV

-8.0

%

-7.5

%

18.5

%

34.6

%

39.7

%

Change in share price

-6.9

%

-7.6

%

22.6

%

57.2

%

65.2

%

Russell Microcap Index

-7.6

%

-11.0

%

44.2

%

60.0

%

60.6

%

Russell Microcap Value Index

-2.1

%

0.1

%

55.1

%

70.2

%

68.3

%

Russell 2000

-7.5

%

-5.8

%

39.4

%

59.0

%

62.9

%

Mr. Rendino and Mr. Wolfe will hold a conference call tomorrow, Thursday, May 12, 2022, at 9:00 a.m. EST to discuss first quarter 2022 results and developments during the second quarter of 2022. 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 undervalued 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.

Press contacts:
Daniel B. Wolfe
180 Degree Capital Corp.
973-746-4500
ir@180degreecapital.com

Armel Leslie
Peak Strategies
aleslie@peaksstrategies.com

Forward-looking statements

This press release may contain forward-looking statements relating to 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 purpose 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 2021 Annual Report on Form N-CSR for more information on its expenses and expense ratios.

Note: Cash amounts included in this release are net of unsettled trades.

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