MONTCLAIR, N.J., May 01, 2024 (GLOBE NEWSWIRE) -- 180 Degree Capital Corp. (“180 Degree Capital”) (NASDAQ: TURN), noted today that the average discount between its estimated daily net asset value per share (“NAV”) and its daily closing stock price during April 2024 and year-to-date through the end of April 2024, were approximately 14% and 20%, respectively.1 This discount was approximately 16% on April 30, 2024.
As previously disclosed in a press release on November 13, 2023, 180 Degree Capital’s Board of Directors has set two measurement periods of 1) January 1, 2024 to December 31, 2024, and 2) January 1, 2025 to June 30, 2025, in which it will evaluate the average discount between TURN’s estimated daily NAV and its closing stock price pursuant to a Discount Management Program. Should TURN’s common stock trade at an average daily discount to NAV of more than 12% during either of these measurement periods, 180 Degree Capital’s Board will consider all available options at the end of each measurement period including, but not limited to, a significant expansion of 180 Degree Capital’s current stock buyback program of up to $5 million, cash distributions reflecting a return of capital to shareholders, or a tender offer.
“April 2024 was difficult for microcapitalization stocks, and 180 Degree Capital’s holdings were not immune to such pressures,” said Kevin M. Rendino, Chief Executive Officer of 180 Degree Capital. “It is beyond frustrating that we are back to an environment where fear has taken over investor sentiment due to concerns of stagflation and/or interest rates remaining at current levels for an extended period. The pervasive belief is that such environments disproportionately impact all microcapitalization companies unless proven otherwise. There is a perception of what might happen, and then there is the actual reality of what is happening. We know “the perception” does not accurately reflect the health or business prospects of many of our portfolio companies. For example, our portfolio holdings, Intevac, Inc. (IVAC), Mama’s Creations, Inc. (MAMA), and Lantronix, Inc. (LTRX), all provided positive updates on their businesses in April 2024. We look forward to updates from our remaining companies in May 2024, as we believe that there are more positives than negatives about their businesses that can drive value creation for 180 Degree Capital’s stockholders.”
“This market has become borderline laughable in its inability to reward any company other than those with products, or who are thought to have products, that enable artificial intelligence solutions, such as NVDA,” added Mr. Rendino. “While that statement may be an exaggeration, it is not too far off. The Russell Microcap Index is still down 30% from its November 2021 highs, but the fundamentals of many of its component companies do not support such declines in value. In spite of these market dynamics, we remain focused on our investment strategy that we believe will create value for stockholders over investment cycles and the long term, and we stand ready to ramp up our constructive activism with certain holdings to drive additional value creation.”
“We also wanted to take this opportunity to thank 180 Degree Capital’s stockholders for their support at this year’s Annual Meeting of Stockholders,” said Daniel B. Wolfe, President of 180 Degree Capital. “Approximately 70% of our outstanding common stock voted on this year’s proposals without us needing to actively solicit votes. Each of our director nominees received affirmative votes from over 94% of the shares voted at the meeting. Shareholders also affirmed the selection of our independent registered public accountant, EisnerAmper LLP, for this fiscal year. We are committed to value creation through our investment focus and constructive activism strategy for all stockholders, and again appreciate the overwhelming support we received at this year’s Annual Meeting.”
Annual Meeting of Shareholders
The Company held its Annual Meeting of Shareholders on April 15, 2024. The following votes were cast for directors:
| For | % Voted For | Withheld | % Withheld | |
| Stacy R. Brandom | 6,560,517 | 94.4% | 391,454 | 5.6% |
| Kevin M. Rendino | 6,607,460 | 95.0% | 344,511 | 5.0% |
| Richard P. Shanley | 6,569,953 | 94.5% | 382,018 | 5.5% |
| Parker A. Weil | 6,572,294 | 94.5% | 379,677 | 5.5% |
| Daniel B. Wolfe | 6,602,549 | 95.0% | 349,422 | 5.0% |
The following votes were cast to ratify EisnerAmper LLP as the Company's independent public accounting firm for the fiscal year ending December 31, 2024:
| For | Against | Abstain |
| 6,663,292 | 54,571 | 234,108 |
| 95.8% | 0.8% | 3.4% |
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
Robert E. Bigelow
180 Degree Capital Corp.
973-746-4500
ir@180degreecapital.com
Mo Shafroth
RF Binder
Morrison.shafroth@rfbinder.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.
1. Daily estimated NAVs used for the discount calculation outside of quarter-end dates are determined as prescribed in 180’s Valuation Procedures for Level 3 assets. Non-investment-related assets and liabilities used to determine estimated daily NAV are those reported as of the end of the prior quarter.
