180 Degree Capital Corp. Effects 1-for-3 Reverse Stock Split

Rhea-AI Summary

180 Degree Capital Corp. (NASDAQ: TURN) implemented a 1-for-3 reverse stock split effective January 4, 2021, reducing approximately 31.1 million shares to 10.4 million. The reverse split retains shareholders' percentage ownership, with cash issued for fractional shares. In tandem, the number of authorized shares decreased from 45 million to 15 million. American Stock Transfer & Trust Company, LLC serves as the exchange agent, guiding shareholders in the conversion process. 180 Degree Capital focuses on investing in undervalued small companies, aiming for significant share price recoveries through constructive activism.

MONTCLAIR, N.J., Jan. 04, 2021 (GLOBE NEWSWIRE) -- 180 Degree Capital Corp. (NASDAQ:TURN) (“180” and the “Company”), today noted that its previously announced 1-for-3 reverse stock split of the Company's common stock (the "Common Stock") became effective prior to the opening of trading on Nasdaq, and that the Common Stock will begin trading on a split-adjusted basis at the opening of trading today under the new CUSIP number 68235B208.

As a result of the reverse stock split, each 3 shares of issued Common Stock were converted into 1 share of Common Stock. The reverse stock split affected all stockholders uniformly and did not alter any stockholder's percentage ownership interest in the Company, except to the extent that the reverse stock split resulted in any of the Company's stockholders owning a fractional share. Shareholders will receive cash in lieu of any fraction of a share that they would have otherwise been entitled to receive as a result of the reverse stock split. The reverse stock split reduced the number of shares of outstanding Common Stock from approximately 31.1 million to approximately 10.4 million. The number of authorized shares of Common Stock under the Company's Amended Certificate of Incorporation has been proportionately reduced from 45 million shares to 15 million shares.

American Stock Transfer & Trust Company, LLC, the Company's transfer agent, is acting as the exchange agent in connection with the reverse stock split. Shareholders holding Common Stock in certificated form will receive instructions from the transfer agent on how to surrender the certificates representing the pre-split shares in exchange for the new book-entry shares in electronic form. Shareholders who hold their shares electronically or in street name are not required to take any action to effect the exchange of their shares.

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. Wolfe
180 Degree Capital Corp.
973-746-4500

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.

FAQ

What is the significance of the reverse stock split for 180 Degree Capital Corp. (TURN)?

The reverse stock split reduces the number of outstanding shares from approximately 31.1 million to 10.4 million, potentially enhancing the share price and aligning with regulatory requirements.

When did the reverse stock split for TURN become effective?

The reverse stock split became effective on January 4, 2021.

How does the reverse stock split affect my shares in 180 Degree Capital Corp.?

Shareholders retain their ownership percentage, while fractional shares will be compensated in cash.

What changes occurred in the authorized shares of TURN after the split?

The authorized shares decreased from 45 million to 15 million after the reverse stock split.

Who is managing the reverse stock split process for 180 Degree Capital Corp.?

American Stock Transfer & Trust Company, LLC is acting as the exchange agent for the reverse stock split.