180 Degree Capital Corp Stock Price, News & Analysis

180 Degree Capital Corp. (NASDAQ:TURN) has announced a definitive agreement to merge with Mount Logan Capital Inc. in an all-stock transaction. The combined entity will operate as Mount Logan Capital Inc. and trade on Nasdaq under MLCI, managing over $2.4 billion in assets focused on private credit markets.

The merger values Mount Logan at approximately $67.4 million, with 180 Degree Capital shareholders receiving proportionate ownership based on NAV at closing. Post-merger ownership is estimated at 40% for 180 Degree Capital shareholders and 60% for Mount Logan shareholders. The deal has secured support from approximately 20% of 180 Degree Capital and 23% of Mount Logan shareholders through voting agreements.

The combined company will feature a regulated insurance solutions business with $1.1 billion in total assets and plans to pay quarterly dividends subject to board approval. Ted Goldthorpe, Mount Logan's current CEO, will lead the merged entity. The transaction is expected to complete in mid-2025, subject to regulatory and shareholder approvals.

180 Degree Capital Corp. (NASDAQ:TURN) has responded to a press release and nomination notice from Marlton Partners L.P. received on December 17, 2024. CEO Kevin Rendino stated that Marlton's press release contains inaccuracies and distortions, which the company plans to address at an appropriate time. The company maintains its focus on strategies aimed at maximizing shareholder value.

180 Degree Capital Corp. (NASDAQ: TURN) reported an average discount between its estimated daily net asset value per share (NAV) and stock price of approximately 21% in November 2024 and 20% year-to-date through November. The company's NAV increased by approximately 26% in November, driven by the successful sale of Brightcove (BCOV) to Bending Spoons for $233 million and strategic portfolio management. The company also benefited from the sale of its Quantum (QMCO) position during a significant price rally. Management highlighted their 12.7% ownership position and track record of approximately +212% gross total return on public portfolio holdings since 2017, compared to the Russell Microcap Index's +79%.

180 Degree Capital (NASDAQ:TURN) announced that its portfolio company Brightcove (BCOV) has entered into a definitive agreement to be acquired by Bending Spoons for approximately $233 million, or $4.45 per share. 180 Degree Capital owns approximately 1.35 million shares of BCOV. The company views this acquisition as validation of their investment thesis in BCOV, which was based on the company's strong balance sheet, differentiated platform, and recurring revenue. This aligns with 180 Degree Capital's strategy of investing in undervalued companies with strong management teams and potential for material value appreciation.

180 Degree Capital Corp. (NASDAQ:TURN) reported a Net Asset Value Per Share of $4.40 as of September 30, 2024. The company's Q3 2024 performance showed mixed results with public portfolio gross total return of -0.4% for the quarter and -6.3% YTD. The NAV declined -2.2% in Q3 and -12.4% YTD, while the stock price decreased -11.0% and -17.7% respectively. Despite challenging conditions in small and microcapitalization stocks, management expressed optimism about market opportunities, citing historically low valuations and positive reports from major holdings during the earnings cycle.

180 Degree Capital Corp (NASDAQ: TURN) reported an average discount of approximately 20% between its estimated daily net asset value per share and stock price during October 2024 and year-to-date through October. The company's Board is evaluating this discount under its Discount Management Program, with two measurement periods: Jan-Dec 2024 and Jan-Jun 2025. If the average daily discount exceeds 12%, the Board will consider options including expanding its $5 million stock buyback program, cash distributions, tender offers, or other strategic alternatives.

180 Degree Capital Corp. (NASDAQ:TURN) announced its preliminary net asset value per share (NAV) of $4.40 as of September 30, 2024. The company plans to report full Q3 2024 results and host a conference call during the week of November 11, 2024. Management expressed concern about the current share price not reflecting the company's NAV or long-term growth prospects. The company has increased its activism and involvement with portfolio companies to drive value creation, implementing a Discount Management Program and other strategic efforts to enhance shareholder value.

180 Degree Capital Corp. (NASDAQ: TURN) reported an average discount of approximately 21% between its estimated daily net asset value per share (NAV) and its daily closing stock price in September 2024. The year-to-date average discount through September 2024 was about 20%, with a 24% discount on September 30, 2024. The company's Board of Directors is evaluating options under its Discount Management Program, which could include expanding the stock buyback program, cash distributions, or a tender offer if the average daily discount exceeds 12% during specified measurement periods.

CEO Kevin M. Rendino noted a potential shift in sentiment towards small-cap stocks, partly due to the Fed's interest rate reduction. The company believes the current discount to NAV doesn't reflect the potential upside of its portfolio. President Daniel B. Wolfe emphasized that no decisions have been made regarding ending the first measurement period early or taking specific actions, and the Board will prioritize the interests of all shareholders in any decisions made.

180 Degree Capital Corp. (NASDAQ: TURN) reported an average discount of 21% between its estimated daily net asset value per share (NAV) and daily closing stock price in August 2024, with a year-to-date average of 19%. The company's Board of Directors is evaluating this discount as part of its Discount Management Program, which could lead to actions such as expanding the stock buyback program, cash distributions, or a tender offer if the average daily discount exceeds 12% during specified measurement periods.

CEO Kevin M. Rendino emphasized that long-term investors support the company's belief in the potential upside of its current portfolio, despite the recent bear market for small-cap stocks. The company aims to balance addressing the trading discount with preserving long-term value creation potential.