180 Degree Capital Corp. Notes the Start of Discount Management Program First Measurement Period
MONTCLAIR, N.J., Jan. 02, 2024 (GLOBE NEWSWIRE) — 180 Degree Capital Corp. (NASDAQ:TURN) (“180”) noted that today is the beginning of the first measurement period of its previously announced Discount Management Program (the “Program”) established to reduce the discount that 180’s common stock trades at versus its net asset value per share (“NAV”).
As mentioned in 180’s prior press release on November 13, 2023, under the terms of the Program, 180’s Board of Directors have set two measurement periods of January 1, 2024, to December 31, 2024, and January 1, 2025, to June 30, 2025. Should 180’s common stock trade at an average daily discount to NAV1 of more than 12% during either of these measurement periods, 180’s Board will consider all available options including, but not limited to, a significant expansion of 180’s current stock buyback program of up to $5 million, cash distributions, or a tender offer.
“As I noted in prior releases, now that our business transformation is complete with substantially all of 180’s assets in cash and publicly traded securities, we believe TURN’s common stock should not trade at the same discount it did when we first started and had nearly 80% of our holdings in legacy privately held securities,” said Kevin M. Rendino, Chief Executive Officer of 180. “Our Discount Management Program is designed to monitor this discount and set the stage for our Board of Directors to take actions for the benefit of TURN’s common stockholders should the discount not narrow considerably from where it stands today. We take this discount very seriously, and are committed to taking steps to narrow it.”
“To be clear, any decision regarding actions taken at the end of each measurement period as a result of the Program remains with 180’s Board,” said Daniel B. Wolfe, President of 180. “We believe the existence of the Program and its associated measurement periods demonstrate the continued focus of both 180’s Board and management team on taking active steps to minimize any persistent above average discount in 180’s share price. In the future, 180’s Board may or may not determine to extend the Program beyond June 2025.”
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.
Daniel B. Wolfe
Robert 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. Daily estimated NAVs used for the discount calculation outside of quarter-end dates are determined as prescribed in 180’s Valuation Procedures.
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