180 Degree Capital Corp. Notes Average Discount of Net Asset Value Per Share to Stock Price for Eighth Month of Initial Measurement Period of Its Discount Management Program

Core Insights - 180 Degree Capital Corp. reported an average discount of approximately 21% between its estimated daily net asset value (NAV) per share and its daily closing stock price for August 2024, and 19% year-to-date through the end of August 2024, with a specific discount of 25% noted on August 30, 2024 [1][2] Discount Management Program - The Board of Directors has established two measurement periods for evaluating the average discount between TURN's estimated daily NAV and its closing stock price: January 1, 2024 to December 31, 2024, and January 1, 2025 to June 30, 2025 [2] - If the average daily discount exceeds 12% during these periods, the Board will consider options such as expanding the stock buyback program up to $5 million, cash distributions, or a tender offer [2] Shareholder Sentiment - The CEO noted that shareholders have expressed support for the Discount Management Program, emphasizing that the current discount to NAV is inconsistent with the potential upside of the existing portfolio [3] - Long-term investors have indicated a preference for maintaining potential upside rather than pursuing short-term gains through immediate distributions or tender offers [3] Investment Strategy - The company focuses on investing in undervalued small publicly traded companies with turnaround potential, aiming for a significant increase in share price through constructive activism [4] - The management believes that the current macroeconomic conditions for small-cap stocks may be nearing a reversal, positioning the company for strong growth in NAV similar to its performance in the first five years of its existence [3]