180 Degree Capital Corp. Notes Filing of Preliminary Joint Proxy Statement/Prospectus for Proposed Business Combination With Mount Logan Capital Inc. and Provides Interim Update on Developments in Q1 2025
180 Degree Capital Corp. (NASDAQ:TURN) has filed a preliminary joint proxy statement/prospectus for its proposed all-stock merger with Mount Logan Capital Inc. The merged entity will operate as Mount Logan Capital Inc. and trade on Nasdaq as 'MLCI'. TURN shareholders will receive proportionate ownership in New Mount Logan based on NAV at closing, relative to Mount Logan's $67.4 million valuation at signing.
The company reports positive Q1 2025 performance, with significant portfolio outperformance versus the Russell Microcap Index through March 14, 2025. Key catalysts include IVAC's sale to Seagate, SNCR's positive Q4 2024 results, and ACNT's asset sale and improved performance, though offset by challenges at LTRX and CVGI.
Management anticipates a trading window will open once updated preliminary proxy materials including Mount Logan's U.S. GAAP financials are filed, with executives planning to purchase TURN shares in the open market.
180 Degree Capital Corp. (NASDAQ:TURN) ha presentato una dichiarazione di delega/prospetto preliminare congiunta per la sua proposta di fusione interamente azionaria con Mount Logan Capital Inc. L'entità risultante opererà come Mount Logan Capital Inc. e sarà quotata su Nasdaq come 'MLCI'. Gli azionisti di TURN riceveranno una partecipazione proporzionale nella nuova Mount Logan basata sul NAV al momento della chiusura, rispetto alla valutazione di 67,4 milioni di dollari di Mount Logan al momento della firma.
L'azienda riporta una performance positiva nel Q1 2025, con un significativo superamento del portafoglio rispetto all'Indice Russell Microcap fino al 14 marzo 2025. I principali catalizzatori includono la vendita di IVAC a Seagate, i risultati positivi di SNCR nel Q4 2024 e la vendita di attivi di ACNT e il miglioramento delle performance, anche se controbilanciati dalle sfide di LTRX e CVGI.
La direzione prevede che si aprirà una finestra di trading una volta presentati i materiali di delega preliminari aggiornati, inclusi i bilanci GAAP statunitensi di Mount Logan, con i dirigenti che pianificano di acquistare azioni TURN sul mercato aperto.
180 Degree Capital Corp. (NASDAQ:TURN) ha presentado una declaración de poder/prospecto preliminar conjunta para su propuesta de fusión totalmente en acciones con Mount Logan Capital Inc. La entidad fusionada operará como Mount Logan Capital Inc. y cotizará en Nasdaq como 'MLCI'. Los accionistas de TURN recibirán una participación proporcional en la nueva Mount Logan basada en el NAV al cierre, en relación con la valoración de 67,4 millones de dólares de Mount Logan al momento de la firma.
La compañía informa un rendimiento positivo en el Q1 2025, con un destacado rendimiento de la cartera frente al Índice Russell Microcap hasta el 14 de marzo de 2025. Los principales catalizadores incluyen la venta de IVAC a Seagate, los resultados positivos de SNCR en el Q4 2024 y la venta de activos de ACNT y su mejora en el rendimiento, aunque contrarrestados por los desafíos en LTRX y CVGI.
La dirección anticipa que se abrirá una ventana de negociación una vez que se presenten los materiales de poder preliminares actualizados, incluidos los estados financieros GAAP de EE. UU. de Mount Logan, con los ejecutivos planeando comprar acciones de TURN en el mercado abierto.
180 Degree Capital Corp. (NASDAQ:TURN)은 Mount Logan Capital Inc.와의 전액 주식 합병을 위한 초기 공동 위임장/예정서를 제출했습니다. 합병된 법인은 Mount Logan Capital Inc.로 운영되며, Nasdaq에서 'MLCI'로 거래됩니다. TURN 주주들은 서명 시 Mount Logan의 6,740만 달러 평가에 따라 마감 시 NAV를 기준으로 새로운 Mount Logan에서 비례 소유권을 받게 됩니다.
회사는 2025년 1분기 긍정적인 성과를 보고하며, 2025년 3월 14일까지 Russell Microcap 지수에 비해 상당한 포트폴리오 초과 성과를 기록했습니다. 주요 촉매 요인은 IVAC의 Seagate에 대한 매각, SNCR의 2024년 4분기 긍정적인 결과, ACNT의 자산 매각 및 성과 개선이 포함되지만, LTRX와 CVGI의 도전 과제로 상쇄됩니다.
경영진은 Mount Logan의 미국 GAAP 재무제표를 포함한 업데이트된 초기 위임 자료가 제출되면 거래 창이 열릴 것으로 예상하며, 경영진은 공개 시장에서 TURN 주식을 구매할 계획입니다.
180 Degree Capital Corp. (NASDAQ:TURN) a déposé une déclaration de procuration/prospectus préliminaire conjointe pour sa proposition de fusion entièrement en actions avec Mount Logan Capital Inc. L'entité fusionnée opérera sous le nom de Mount Logan Capital Inc. et sera cotée sur le Nasdaq sous 'MLCI'. Les actionnaires de TURN recevront une participation proportionnelle dans la nouvelle Mount Logan basée sur la NAV lors de la clôture, par rapport à l'évaluation de 67,4 millions de dollars de Mount Logan au moment de la signature.
L'entreprise rapporte une performance positive au T1 2025, avec une surperformance significative du portefeuille par rapport à l'indice Russell Microcap jusqu'au 14 mars 2025. Les principaux catalyseurs incluent la vente d'IVAC à Seagate, les résultats positifs de SNCR pour le T4 2024, ainsi que la vente d'actifs d'ACNT et l'amélioration des performances, bien que compensés par des défis chez LTRX et CVGI.
La direction prévoit qu'une fenêtre de négociation s'ouvrira une fois que les documents de procuration préliminaires mis à jour, y compris les états financiers GAAP américains de Mount Logan, auront été déposés, les dirigeants prévoyant d'acheter des actions TURN sur le marché ouvert.
180 Degree Capital Corp. (NASDAQ:TURN) hat eine vorläufige gemeinsame Vollmachtserklärung/Prospekt für die geplante vollständige Aktienfusion mit Mount Logan Capital Inc. eingereicht. Die fusionierte Einheit wird als Mount Logan Capital Inc. tätig sein und an der Nasdaq unter 'MLCI' gehandelt. TURN-Aktionäre erhalten anteiliges Eigentum an der neuen Mount Logan basierend auf dem NAV zum Zeitpunkt des Abschlusses, in Bezug auf die Bewertung von 67,4 Millionen Dollar von Mount Logan zum Zeitpunkt der Unterzeichnung.
Das Unternehmen berichtet über eine positive Leistung im Q1 2025, mit einer signifikanten Überperformance des Portfolios im Vergleich zum Russell Microcap Index bis zum 14. März 2025. Wichtige Katalysatoren sind der Verkauf von IVAC an Seagate, die positiven Ergebnisse von SNCR im Q4 2024 und der Verkauf von Vermögenswerten von ACNT sowie die Verbesserung der Leistung, jedoch ausgeglichen durch Herausforderungen bei LTRX und CVGI.
Das Management erwartet, dass sich ein Handelsfenster öffnen wird, sobald die aktualisierten vorläufigen Vollmachtsunterlagen, einschließlich der US-GAAP-Finanzberichte von Mount Logan, eingereicht werden, wobei die Führungskräfte planen, TURN-Aktien am offenen Markt zu kaufen.
- Portfolio significantly outperforming Russell Microcap Index in Q1 2025
- Multiple positive catalysts: IVAC sale to Seagate, SNCR's strong Q4 results, ACNT's asset sale
- Management commitment to purchase shares when trading window opens
- Strategic merger provides potential for meaningful shareholder value creation
- Ongoing operational struggles at LTRX and CVGI portfolio companies
- Management currently in trading blackout period
Insights
180 Degree Capital's preliminary proxy filing marks a significant milestone in its all-stock merger with Mount Logan Capital. This transaction will effectively transform TURN from an investment vehicle into part of a larger asset management platform, with shareholders receiving proportionate ownership in New Mount Logan based on TURN's NAV relative to Mount Logan's
The merger represents a strategic pivot that could address the persistent NAV discount TURN has faced as a smaller public entity. Scale matters in asset management, and this combination potentially provides operational efficiencies and expanded investment capabilities. The structure as an all-stock transaction preserves shareholder participation in future upside rather than cashing them out.
Particularly noteworthy is the portfolio outperformance disclosed for Q1 2025, driven by specific catalysts including IVAC's sale to Seagate and SNCR's strong results. This performance enhancement heading into the transaction potentially improves the exchange ratio for TURN shareholders, as their proportionate ownership is NAV-based.
Management's stated intention to purchase shares when permitted signals confidence in the current valuation and merger prospects. While execution risks remain, the disclosure of the Special Committee's "robust process" suggests thorough evaluation of strategic alternatives before recommending this transaction.
MONTCLAIR, N.J., March 24, 2025 (GLOBE NEWSWIRE) -- 180 Degree Capital Corp. (NASDAQ:TURN) (“180 Degree Capital”) today noted that it had filed a preliminary joint proxy statement/prospectus on Schedule 14A with the Securities and Exchange Commission (“SEC”) regarding its proposed merger with Mount Logan Capital Inc. (“Mount Logan”) in an all-stock transaction (the “Business Combination”). As noted in its original press release issued on January 17, 2025, the surviving entity is expected to be a Delaware corporation operating as Mount Logan Capital Inc. (“New Mount Logan”) listed on Nasdaq under the symbol “MLCI”. In connection with the Business Combination, 180 Degree Capital shareholders will receive proportionate ownership of New Mount Logan determined by reference to 180 Degree Capital’s NAV at closing relative to a valuation of Mount Logan of approximately
“We are pleased to have the preliminary proxy materials for our proposed Business Combination on file with the SEC and look forward to having more fulsome discussions with our shareholders regarding what we believe to be are the unique opportunities for creation of value for our shareholders through this transaction,” said Kevin M. Rendino, Chief Executive Officer of 180 Degree Capital. “I encourage our shareholders to review our preliminary proxy materials, and when available, our definitive proxy materials, as they contain a detailed background of the robust process of the Special Committee of our Board of Directors that concluded with its recommendation to pursue the Business Combination with Mount Logan. We believe that this Business Combination has the potential to create meaningful value for 180 Degree Capital shareholders and that Mount Logan continues to build value through its growing platform including the recent close of its strategic minority investment in Runway Growth Capital and Mount Logan’s strong operating metrics. We could not be more excited about the potential for further value creation through the combination of our businesses.”
“We are also pleased that Q1 2025 has been positive for a number of our portfolio holdings, including the culmination of a number of identified potential catalysts that have led to increases in value for these holdings this quarter,” added Daniel B. Wolfe, President of 180 Degree Capital. “We are proud of the significant outperformance of our investment portfolio versus the Russell Microcap Index this year through March 14, 2025. This outperformance was driven primarily by long-awaited catalysts including the announcement of the sale of IVAC to Seagate, the positive Q4 2024 results and outlook from SNCR and the announced sale of certain assets along with the improving operating performance of ACNT, offset by ongoing struggles at LTRX and CVGI. We are optimistic regarding the potential additional value-creating catalysts in our portfolio that we expect to occur during the period between now and the potential closing of the proposed Business Combination with Mount Logan. We remain focused on building the maximum net asset value of 180 Degree Capital heading into this proposed Business Combination to set the floor for potential future value creation for our collective shareholders.”
Mr. Rendino concluded, “While we remain in a blackout period for management trading of 180 Degree Capital common shares, 180 Degree Capital currently anticipates a trading window will open once an updated Preliminary Proxy Statement/Prospectus that includes U.S. GAAP financial statements for Mount Logan is filed with the SEC. When a trading window opens, you can expect Daniel and I will be active purchasers of 180 Degree Capital common shares in the open market.”
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 Degree Capital and its holdings can be found on its website at www.180degreecapital.com.
Press Contact:
Daniel B. Wolfe
Robert E. Bigelow
180 Degree Capital Corp.
973-746-4500
ir@180degreecapital.com
Additional Information and Where to Find It
In connection with the agreement and plan of merger among 180 Degree Capital Corp. ("180 Degree Capital"), Mount Logan Capital Inc. ("Mount Logan"), Yukon New Parent, Inc. ("New Mount Logan"), Polar Merger Sub, Inc., and Moose Merger Sub, LLC, dated January 16, 2025, as it may from time to time be amended, modified or supplemented (the "Merger Agreement") that details the proposed combination of the businesses of 180 Degree Capital and Mount Logan and any other transactions contemplated by and pursuant to the terms of the Merger Agreement (the "Business Combination"), 180 Degree Capital intends to file with the SEC and mail to its shareholders a proxy statement on Schedule 14A (the “Proxy Statement”), containing a form of WHITE proxy card. In addition, the surviving Delaware corporation, New Mount Logan plans to file with the SEC a registration statement on Form S-4 (the “Registration Statement”) that will register the exchange of New Mount Logan shares in the Business Combination and include the Proxy Statement and a prospectus of New Mount Logan (the “Prospectus”). The Proxy Statement and the Registration Statement (including the Prospectus) will each contain important information about 180 Degree Capital, Mount Logan, New Mount Logan, the Business Combination and related matters. SHAREHOLDERS OF 180 DEGREE CAPITAL AND MOUNT LOGAN ARE URGED TO READ THE PROXY STATEMENT AND PROSPECTUS CONTAINED IN THE REGISTRATION STATEMENT AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE APPLICABLE SECURITIES REGULATORY AUTHORITIES AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT 180 DEGREE CAPITAL, MOUNT LOGAN, NEW MOUNT LOGAN, THE BUSINESS COMBINATION AND RELATED MATTERS. Investors and security holders may obtain copies of these documents and other documents filed with the applicable securities regulatory authorities free of charge through the website maintained by the SEC at https://www.sec.gov and the website maintained by the Canadian securities regulators at www.sedarplus.ca. Copies of the documents filed by 180 Degree Capital are also available free of charge by accessing 180 Degree Capital’s investor relations website at https://ir.180degreecapital.com.
Certain Information Concerning the Participants
180 Degree Capital, its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in connection with the Business Combination. Information about 180 Degree Capital’s executive officers and directors is available in 180 Degree Capital’s Annual Report filed on Form N-CSR for the year ended December 31, 2024, which was filed with the SEC on February 13, 2025, and in its proxy statement for the 2024 Annual Meeting of Shareholders (“2024 Annual Meeting”), which was filed with the SEC on March 1, 2024. To the extent holdings by the directors and executive officers of 180 Degree Capital securities reported in the proxy statement for the 2024 Annual Meeting have changed, such changes have been or will be reflected on Statements of Change in Ownership on Forms 3, 4 or 5 filed with the SEC. These documents are or will be available free of charge at the SEC’s website at https://www.sec.gov. Additional information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the 180 Degree Capital shareholders in connection with the Business Combination will be contained in the Proxy Statement when such document becomes available.
Mount Logan, its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Mount Logan in favor of the approval of the Business Combination. Information about Mount Logan’s executive officers and directors is available in Mount Logan’s annual information form dated March 14, 2024, available on its website at https://mountlogancapital.ca/investor-relations and on SEDAR+ at https://sedarplus.ca. To the extent holdings by the directors and executive officers of Mount Logan securities reported in Mount Logan’s annual information form have changed, such changes have been or will be reflected on insider reports filed on SEDI at https://www.sedi.ca/sedi/. Additional information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the Mount Logan shareholders in connection with the Business Combination will be contained in the Prospectus included in the Registration Statement when such document becomes available.
Non-Solicitation
This letter and the materials accompanying it are not intended to be, and shall not constitute, an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.
Forward-Looking Statements
This press release, and oral statements made from time to time by representatives of 180 Degree Capital and Mount Logan, may contain statements of a forward-looking nature relating to future events within the meaning of federal securities laws. Forward-looking statements may be identified by words such as “anticipates,” “believes,” “could,” “continue,” “estimate,” “expects,” “intends,” “will,” “should,” “may,” “plan,” “predict,” “project,” “would,” “forecasts,” “seeks,” “future,” “proposes,” “target,” “goal,” “objective,” “outlook” and variations of these words or similar expressions (or the negative versions of such words or expressions). Forward-looking statements are not statements of historical fact and reflect Mount Logan’s and 180 Degree Capital’s current views about future events. Such forward-looking statements include, without limitation, statements about the benefits of the Business Combination involving Mount Logan and 180 Degree Capital, including future financial and operating results, Mount Logan’s and 180 Degree Capital’s plans, objectives, expectations and intentions, the expected timing and likelihood of completion of the Business Combination, and other statements that are not historical facts, including but not limited to future results of operations, projected cash flow and liquidity, business strategy, payment of dividends to shareholders of New Mount Logan, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this press release will occur as projected, and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, without limitation, the ability to obtain the requisite Mount Logan and 180 Degree Capital shareholder approvals; the risk that Mount Logan or 180 Degree Capital may be unable to obtain governmental and regulatory approvals required for the Business Combination (and the risk that such approvals may result in the imposition of conditions that could adversely affect New Mount Logan or the expected benefits of the Business Combination); the risk that an event, change or other circumstance could give rise to the termination of the Business Combination; the risk that a condition to closing of the Business Combination may not be satisfied; the risk of delays in completing the Business Combination; the risk that the businesses will not be integrated successfully; the risk that synergies from the Business Combination may not be fully realized or may take longer to realize than expected; the risk that any announcement relating to the Business Combination could have adverse effects on the market price of Mount Logan’s common shares or 180 Degree Capital’s common shares; unexpected costs resulting from the Business Combination; the possibility that competing offers or acquisition proposals will be made; the risk of litigation related to the Business Combination; the risk that the credit ratings of New Mount Logan or its subsidiaries may be different from what the companies expect; the diversion of management time from ongoing business operations and opportunities as a result of the Business Combination; the risk of adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the Business Combination; competition, government regulation or other actions; the ability of management to execute its plans to meet its goals; risks associated with the evolving legal, regulatory and tax regimes; changes in economic, financial, political and regulatory conditions; natural and man-made disasters; civil unrest, pandemics, and conditions that may result from legislative, regulatory, trade and policy changes; and other risks inherent in Mount Logan’s and 180 Degree Capital’s businesses. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Readers should carefully review the statements set forth in the reports, which 180 Degree Capital has filed or will file from time to time with the SEC and Mount Logan has filed or will file from time to time on SEDAR+.
Neither Mount Logan nor 180 Degree Capital undertakes any obligation, and expressly disclaims any obligation, to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Any discussion of past performance is not an indication of future results. Investing in financial markets involves a substantial degree of risk. Investors must be able to withstand a total loss of their investment. The information herein is believed to be reliable and has been obtained from sources believed to be reliable, but no representation or warranty is made, expressed or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of the information and opinions. The references and link to the website www.180degreecapital.com and mountlogancapital.ca have been provided as a convenience, and the information contained on such websites are not incorporated by reference into this press release. Neither 180 Degree Capital nor Mount Logan is responsible for the contents of third-party websites.
FAQ
What is the exchange ratio for TURN shareholders in the Mount Logan merger?
What will be the new ticker symbol for the merged company after TURN combines with Mount Logan?
How has TURN's investment portfolio performed in Q1 2025?
When can TURN executives resume trading company shares?
