180 Degree Capital Corp. Announces Discount Management Program

MONTCLAIR, N.J., Nov. 13, 2023 (GLOBE NEWSWIRE) -- 180 Degree Capital Corp. (NASDAQ:TURN) (“180” and the “Company”), today announced a Discount Management Program (the “Program”) established to reduce the discount that 180’s common stock trades at versus net asset value per share (“NAV”) that is discussed in more detail below.

“As noted in our Q3 2023 results press release, the transformation of our business is virtually complete,” said Kevin M. Rendino, Chief Executive Officer of 180. “It has been a long road to get to the place where 97% of our assets¹ are comprised of our strategy of micro-cap public market investing with a constructive activist approach and cash.  As I have said from day one, the more transparent and easily understood our holdings are, the narrower the discount should be between our share price and our NAV. We have always stated that completion of this transformation provides flexibility and more control for our ability to generate returns for shareholders. We are pleased to announce today that we will be implementing a Discount Management Program as a first step toward seeking to further decrease the discount TURN’s common stock trades at versus NAV. This will involve using all methods and tools available to us as a registered investment company. Now that our transformation is complete, we will monitor how our stock trades relative to our NAV. We believe TURN’s common stock should not trade at the same discount it did when we first started and had nearly 80% of our holdings in legacy private holdings.”

Under terms of the Program, 180’s Board of Directors have set two measurement periods of January 1, 2024, to December 31, 2024, and January 1, 2025, to June 30, 2025. Should 180’s common stock trade at an average daily discount to NAV² of more than the current average trading discount of other equity-focused closed end funds, or 12%, during either of these measurement periods, 180’s Board will consider all available options including, but not limited to, significant expansion of 180’s stock buyback program, cash distributions, or a tender offer.

“To be clear, any decision regarding actions taken at the end of each measurement period as a result of the Program remains with 180’s Board,” said Daniel B. Wolfe, President of 180. “We believe the existence of the Program and its associated measurement periods demonstrate the continued focus of both 180’s Board and management team on taking active steps to minimize any persistent discount in 180’s share price. In the future, 180’s Board may or may not determine to extend the Program beyond June 2025.”