Welcome to our dedicated page for Equus Total Return news (Ticker: EQS), a resource for investors and traders seeking the latest updates and insights on Equus Total Return stock.
Equus Total Return Inc (NYSE: EQS) generates news flow typical of Business Development Companies with concentrated portfolio holdings. As a closed-end fund investing in middle market companies and maintaining an energy subsidiary, Equus releases updates that matter to shareholders tracking private investment valuations and oil and gas operations.
Quarterly net asset value announcements represent the primary recurring news for Equus shareholders. These NAV updates reveal how management values the private company portfolio and directly impact the premium or discount at which shares trade. Because BDC holdings lack daily market prices, each quarterly valuation provides fresh insight into portfolio performance.
News from Morgan E&P, the fund's Williston Basin energy subsidiary, covers drilling programs, production updates, and financing arrangements for North Dakota oil and gas operations. Energy sector developments at Morgan E&P can significantly influence Equus portfolio value given the subsidiary's role in overall fund assets.
Corporate governance announcements include board appointments, management changes, and shareholder meeting notices. As a regulated investment company, Equus also releases compliance-related updates regarding NYSE listing requirements and SEC filing obligations.
Bookmark this page to follow Equus Total Return developments. Understanding BDC news requires attention to NAV changes, portfolio company performance, and regulatory compliance updates that affect this closed-end fund investment.
Equus Total Return has received authorization from shareholders, holding 55.64% of common stock, to withdraw its election as a business development company (BDC) under the Investment Company Act of 1940. This strategic move aims to transform Equus into an operating company and enhances flexibility for future acquisitions. The withdrawal must occur by January 31, 2022, contingent on entering a definitive agreement for an operating company acquisition. However, challenges such as the COVID-19 pandemic could hinder these endeavors, introducing various risks and uncertainties.
Equus Total Return, Inc. (NYSE: EQS) reported net assets of $34.7 million as of June 30, 2021, reflecting a $0.6 million increase from March 31, 2021. The net asset value per share rose to $2.57 from $2.52. Notably, the fair value of Equus Energy, LLC increased from $8.5 million to $10.25 million due to rising crude and natural gas prices and strong transactions in the Permian Basin. Additionally, Equus invested an extra $350,000 in Equus Energy to bolster its working capital for future transactions.
Equus Total Return, Inc. (NYSE: EQS) announced its net assets increased to $34.1 million as of March 31, 2021, up from $33.8 million at the end of 2020. The net asset value per share rose to $2.52 from $2.50. This growth is attributed to rising fair value for Equus Energy, which increased from $7.0 million to $8.5 million, driven by higher crude and natural gas prices, along with significant acquisitions in the Permian Basin. The company has also received shareholder approval to withdraw its BDC election and increase its authorized shares from 50 million to 100 million.
Equus Total Return, Inc. (EQS) reported a decline in net assets to $33.8 million as of December 31, 2020, down $3.6 million from September 30, 2020. The net asset value per share also decreased from $2.77 to $2.50. The fair value of Equus Energy, LLC rose from $5.5 million to $7.0 million due to increased crude and natural gas prices. The Fund generated $24.0 million from disposals in Q4 2020, including proceeds from the sale of PalletOne and MVC shares. A strategy to transform into an operating company was approved by shareholders.
Equus Total Return, Inc. (NYSE: EQS) received shareholder approval to withdraw its classification as a business development company under the Investment Company Act of 1940. This decision is part of a strategic transformation towards becoming an operating company. It also authorized an increase in shares from 50 million to 100 million for common stock and from 5 million to 10 million for preferred stock, enhancing flexibility in acquisitions. However, ongoing challenges from COVID-19 may impede these plans.
Equus Total Return, Inc. (NYSE: EQS) announced an initial payment of $18.2 million from its shareholding sale in PalletOne, Inc., with the remaining balance anticipated in Q2 2021. The total purchase price of $232 million was finalized by UFP Industries, Inc., valuing PalletOne's net equity around $130 million. Notably, Equus's estimated fair value for its PalletOne investment decreased to $24 million as of September 30, 2020, due to projected losses and delays from COVID-19. Equus's involvement with PalletOne dates back to 2001.
UFP Industries Acquires PalletOne for $232 Million
Equus Total Return announced the acquisition of PalletOne, Inc. by UFP Industries for approximately $232 million, assuming a cash-free, debt-free status. Additionally, UFP will pay $21 million for PalletOne’s recent capital expenditures. Since Equus's initial investment in 2001, PalletOne has grown to be a leading wooden pallet manufacturer in the U.S., supported by Equus's strategic guidance. This acquisition marks a significant step in realizing Equus's long-term investment strategy.
Equus Total Return, Inc. (NYSE: EQS) announced that UFP Industries, Inc. (Nasdaq: UFPI) will acquire 100% of PalletOne, Inc. for approximately $232 million, plus $18 million for recent capital expenditures. The deal is set to close on December 28, 2020, pending regulatory approval. Equus has been invested in PalletOne since 2001, aiding its emergence as a leading wooden pallet manufacturer in the U.S. Both companies' executives expressed satisfaction with the partnership and the transition into new opportunities.
Equus Total Return, Inc. (NYSE: EQS) reported its net assets at $37.4 million as of September 30, 2020, down from $41.5 million on June 30, 2020. The net asset value per share decreased to $2.77 from $3.07. The Fund's investment in PalletOne saw a fair value decline from $27.5 million to $24 million, influenced by market conditions and COVID-19 disruptions. In contrast, the value of MVC Capital shares increased from $3.8 million to $4.6 million, following a rise in MVC's trading price. The continuing impact of COVID-19 poses ongoing risks to operations and portfolio performance.
Equus Total Return, Inc. (NYSE: EQS) reported net assets of $41.5 million as of June 30, 2020, up from $38.9 million on March 31, 2020. The net asset value per share increased to $3.07, reflecting strong performance in portfolio companies, including PalletOne and Equus Energy. PalletOne's fair value rose from $26.5 million to $27.5 million, driven by operational success, while Equus Energy's value increased from $4.5 million to $5.5 million due to rising crude oil prices, from $20.48 to $40.65 per barrel. MVC Capital shares also saw significant appreciation during the quarter.
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