“The third quarter of 2023 was challenging for 180 and the public markets as a whole,” said Kevin M. Rendino, Chief Executive Officer of 180. “While our public portfolio declined 12.8%, an additional decline in our largest legacy private portfolio company,
“While many of 180’s current portfolio companies have been swept up in the recent vicious market selling, particularly for microcap companies, we do not believe the businesses and balance sheets of many of these holdings reflect the distress that their falling stock prices indicate,” added
- Synchronoss Technologies, Inc., (SNCR) sold its non-core assets and is now a pure-play cloud service company that is currently expected to generate material positive free cash flows and 25%+ EBITDA margins in 2024.
- Intevac, Inc., (IVAC) is in the final stages of certification for its new TRIO tool with its partner,
Corning . - The Arena Group Holdings, Inc. (AREN) signed definitive agreements to merge with Bridge Media, a company owned by the founder and owner of Five Hour Energy, that will result in a combined company with 100 owned and affiliated stations and over-the-top partnerships across 46 states.
- Lantronix, Inc., (LTRX) announced that it is beginning volume production of its smart-meter product for Gridspertise/Enel that is expected to drive material organic growth and profitability in 2024.
- Potbelly Corporation (PBPB) announced a new shop development agreement for 36 additional shops and 4 refranchised shops that brings its new contracted franchised shops to 150, as well as announcing record average unit volumes and continued growth in shop-level margins and gains in market share.”
Discount Management Program
In addition to reporting its financial results for Q3 2023, 180 announced a Discount Management Program (the “Program”) that is discussed in more detail in a press release that can be found at https://ir.180degreecapital.com/news-events. This Program establishes measurement periods for 180’s common stock price as a percentage of NAV2. Should the average daily discount following each of these periods exceed 12%, then 180’s Board of Directors will consider all available options to narrow such discount.
The table below summarizes 180’s performance over periods of time through the end of Q3 20233:
Quarter | YTD | 1 Year | Recent Peak | 3 Year | 5 Year | Inception to Date | ||||||||
Q3 2023 | Q4 2022- Q3 2023 | Q3 2022- Q3 2023 | Q3 2020- Q3 2023 | Q3 2018- Q3 2023 | Q4 2016- Q3 2023 | |||||||||
TURN Public Portfolio Gross Total Return (Excluding SMA Carried Interest) | -12.8% | -13.2% | -19.8% | -46.0% | -23.2% | 22.9% | 164.7% | |||||||
TURN Public Portfolio Gross Total Return (Including SMA Carried Interest) | -12.8% | -13.3% | -19.8% | -44.0% | -18.0% | 31.2% | 182.0% | |||||||
Change in NAV | -21.1% | -22.3% | -39.4% | -55.9% | -43.6% | -41.8% | -30.1% | |||||||
Change in Stock Price | -4.7% | -19.7% | -22.8% | -41.1% | -25.2% | -34.9% | 2.4% | |||||||
Russell Microcap Index | -7.9% | -5.9% | -1.4% | -33.8% | 15.1% | 1.0% | 27.7% | |||||||
Russell Microcap Value Index | -5.6% | -6.3% | -0.6% | -25.0% | 44.0% | 13.7% | 38.8% | |||||||
Russell Microcap Growth Index | -12.1% | -7.4% | -4.9% | -44.9% | -16.8% | -16.4% | 11.2% | |||||||
Russell 2000 | -5.1% | 2.5% | 8.9% | -9.0% | 22.9% | 12.4% | 43.7% |
About
Press Contact:
973-746-4500
ir@180degreecapital.com
Peaks Strategies
mshafroth@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
1. Cash including our holdings in money-market cash sweep funds and the expected receipt of
2. Average discount of equity focused closed-end funds calculated using Bloomberg. 180 reports its NAV publicly on a quarterly basis. Daily estimated NAVs used for the discount calculation outside of quarter-end dates are determined as prescribed in 180’s Valuation Procedures.
3. Past performance is not an indication or guarantee of future performance. Gross unrealized and realized total returns of 180's cash and securities of publicly traded companies are compounded on a quarterly basis, and intra-quarter cash flows from investments in or proceeds received from privately held investments are treated as inflows or outflows of cash available to invest or withdrawn, respectively, for the purposes of this calculation. 180 is an internally managed registered closed-end fund that has a portion of its assets in legacy privately held companies that are fair valued on a quarterly basis by the Valuation Committee of its Board of Directors, and 180 does not have an external manager that is paid fees based on assets and/or returns. Please see 180's filings with the
Source:
2023 GlobeNewswire, Inc., source