180 Degree Capital Corp. Reports Preliminary Q3 2022 Net Asset Value Per Share Decline of 3.0-3.5% From Q2 2022 Net Asset Value Per Share of $8.35

Rhea-AI Summary

180 Degree Capital Corp. (NASDAQ:TURN) reported preliminary results for Q3 2022, with cash and securities totaling $67.5 million or $6.51 per share. The net asset value (NAV) per share is expected to be approximately $8.06-$8.10, showing a minor decrease from the previous quarter. Despite the challenging market, the company believes it has flexibility for value creation and substantial upside potential in its holdings. Management has increased their personal investments in the company, underscoring their commitment to shareholder interests.

Positive

• Cash and securities of $67.5 million or $6.51 per share reported as of Q3 2022.
• Expected NAV of $8.06-$8.10 per share, reflecting only a slight decrease.
• Management's increased investments in the company's common stock indicate strong alignment with shareholder interests.

Negative

• Slight decrease in NAV compared to the previous quarter, indicating potential valuation challenges.

CASH AND SECURITIES OF PUBLIC AND RELATED COMPANIES AS OF Q3 2022 OF $67.5 MILLION OR $6.51 PER SHARE

MONTCLAIR, N.J., Oct. 12, 2022 (GLOBE NEWSWIRE) -- 180 Degree Capital Corp. (NASDAQ:TURN) (“180” and the “Company”), today reported preliminary financial results as of September 30, 2022.

“To say that 2022 has been a difficult market to navigate might be the understatement of the century,” said Kevin M. Rendino, Chief Executive Officer of 180. “That said, while we have not yet closed our books for the quarter, particularly regarding the valuations for our legacy private portfolio holdings, we currently expect our net asset value per share (NAV) as of September 30, 2022, to be approximately $8.06-$8.10, a slight decrease from the end of the prior quarter. Importantly, we also expect at least 80 percent of our net assets to be in cash and securities of public and related companies as of the end of Q3 2022, and total approximately $67.5 million, or $6.51 per share.

“To be clear, given the current construct of our assets, we believe we have more flexibility for creating shareholder value now than at any time since 180 started in 2017. Despite the market chaos, our NAV was barely down last period, and hopefully represents something closer to a cycle low, rather than a stock market high. We currently believe that many of our holdings have significant upside as we look beyond this difficult period. If that comes to fruition, we believe our NAV could increase materially over the longer term. Once again during Q3 2022, I, along with others on the management team of 180, have shown our commitment to align our interests with our shareholders by increasing our holdings of 180 through open-market purchases of 180’s common stock with after-tax dollars.”

“We note that our preliminary view of NAV reflects the information that we have available to us as of the date of this release and could change once we finalize our financial statements for September 30, 2022,” added Daniel Wolfe, President of 180. “We look forward to discussing these results with our shareholders and other interested parties on our Q3 2022 quarterly update call that we currently expect to hold in early November 2022.”

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
ir@180degreecapital.com

Armel Leslie
Peaks Strategies
aleslie@peaksstrategies.com

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.

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

FAQ

What is the net asset value (NAV) of 180 Degree Capital Corp. as of Q3 2022?

The expected NAV per share is approximately $8.06-$8.10.

What is the total amount of cash and securities held by TURN as of Q3 2022?

The total cash and securities amount to $67.5 million or $6.51 per share.

How has management demonstrated their commitment to shareholders in Q3 2022?

Management has increased their holdings of TURN stock through open-market purchases.

What market conditions did TURN face in 2022?

2022 has been described as a challenging market to navigate by the CEO, Kevin M. Rendino.