180 Degree Capital Corp. Issues Open Letter to the Board and Shareholders of Enzo Biochem, Inc.

MONTCLAIR, N.J., Feb. 04, 2021 (GLOBE NEWSWIRE) -- 180 Degree Capital Corp. (NASDAQ:TURN) (“180” and the “Company”), today issued the following open letter to the board and shareholders of Enzo Biochem, Inc. (“ENZ”).

To the Board of Directors and fellow shareholders of ENZ,

180 is a publicly traded closed-end fund focused on investing in micro capitalization public companies with a constructive, collaborative and collegial activist approach. We currently own 1,147,969 shares, or 2.4%, of Enzo Biochem, Inc. (“ENZ”), and we believe the company is extremely undervalued.

I recently sent an email to the ENZ’s Board of Directors (the “Board”) to set up a time to speak about the results of ENZ’s recent proxy vote and overall corporate governance at the company. My email and request have unfortunately thus far gone unanswered. I can only assume that the Board is hard at work trying to create value for its shareholders rather than speaking to shareholders. To that point, we are deeply concerned that the current management team is completely incapable of generating a return for its shareholders judging from performance of ENZ’s stock during its tenure. As you can see from the following chart of total return¹, there is little for the Board to applaud, as ENZ’s total return for shareholders, under the leadership of Mr. Rabbani, has woefully underperformed and is squarely in the bottom decile of performance among its peers.

TOTAL RETURN	1YR-2020	3YR	5YR
Enzo Biochem, Inc.	12.4%	(61.7%)	(40.5%)
Russell 2000 Index	30.2%	37.1%	114.4%
Russell 2000 Index Health Care	58.0%	73.4%	190.9%
Russell 2000 Index Biotechnology Subsector	70.1%	75.4%	241.4%

And yet, somehow, the Board overseeing this terrible performance has seen it fit to approve what we believe to be egregious compensation for Mr. Rabbini, as highlighted in the chart below.