180 Degree Capital Corp. Executes Share Repurchase Program of Its Common Stock and Plans to Host Its Q1 2023 Conference Call on Friday, May 12, 2023
MONTCLAIR, N.J., May 10, 2023 (GLOBE NEWSWIRE) -- 180 Degree Capital Corp. (NASDAQ: TURN) (“180”) noted today that it repurchased 373,679 shares of its common stock at a price per share of $4.41.1
“In prior shareholder calls, we have discussed the high bar for use of 180’s permanent capital to buy back its own stock or to issue dividends,” said Kevin M. Rendino, Chief Executive Officer of 180. “When we invest shareholder capital in a new portfolio company, we must believe, if our investment thesis comes to fruition, there is at least 100 percent upside within 3 years. Once we use permanent capital to buy back stock, recycling that cash is no longer possible, and therefore, the hurdle rate for executing a buyback is high. Following our positive preannouncement for Q1 2023 results in early April coupled with the subsequent decline in our stock to a level that is a significant discount to our NAV, we have crossed that bar. Our repurchase of 373,679 shares reduces our shares outstanding to 10,000,141. The repurchase of that stock at $4.41 is immediately accretive to 180’s net asset value, and we will continue to be opportunistic when it comes to further repurchases of 180’s stock and/or distributions to shareholders. We have the luxury of being able to consider and execute on such paths given the strength of our balance sheet that is primarily cash and securities of public companies.”
“On April 3, 2023, we announced our Q1 2023 results for our public-related assets, which account for almost 90 percent of our cash and invested assets, to provide timely transparency to shareholders,” added Daniel B. Wolfe, President of 180. “We look forward to discussing these results and our thoughts on the executed buyback with shareholders and other interested parties on Friday, May 12, 2023, at 9am Eastern Time.”
The dial-in information for the call is noted below:
U.S. Domestic Dial-In Number: (609) 746-1082
International Dial-In Numbers:
Presentation materials along with a replay of the meeting will be available on the Company's investor relations website at https://ir.180degreecapital.com/ir-calendar.
About 180 Degree Capital Corp.
180 Degree Capital Corp. (“180”) 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.
Investor Relations Contact:
Daniel B. Wolfe
Rob E. Bigelow
180 Degree Capital Corp.
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.
1. Excluding brokerage commissions.
Released May 10, 2023