180 Degree Capital Corp. Notes Preliminary Net Asset Value per Share of $4.42 as of March 31, 2025, and Portfolio Company Updates From Q1 2025

Core Insights - 180 Degree Capital Corp. reported a preliminary net asset value (NAV) per share of $4.42 as of March 31, 2025, reflecting strong performance from public investments that outperformed the Russell Microcap Index by approximately 1900 basis points [2][4] - The company experienced a gross total return of +4.5% in Q1 2025, contrasting with a -14.4% total return for the Russell Microcap Index, although net total return was -4.7% due to merger-related expenses [2][4] - The company is focused on maximizing NAV for shareholders and believes that the proposed merger with Mount Logan Capital will create significant future value [2][7] Financial Performance - The gross total return of 180 Degree Capital was approximately 1900 basis points above the benchmark, indicating extraordinary performance [2][4] - Day-to-day operating expenses declined by over 30% from Q1 2024, although merger-related expenses were significant, totaling nearly $300,000 due to public efforts to derail the merger [2][4] - As of April 11, 2025, the estimated gross and net total return for 2025 remains approximately 1800 basis points and 1000 basis points ahead of the Russell Microcap Index, respectively [2][4] Portfolio Company Updates - Potbelly Corporation (PBPB) reported Q4 2024 results that exceeded guidance, but Q1 2025 guidance included negative comps due to inclement weather [4][6] - Intevac, Inc. (IVAC) was acquired by Seagate Technology for $4.00 per share, resulting in a total return of $4.102 per share, a 20.6% premium to its closing price on December 31, 2024 [5][6] - Brightcove, Inc. (BCOV) was acquired by Bending Spoons for $4.45 per share, a 2.3% premium to its closing price on December 31, 2024 [5][6] Strategic Initiatives - The company is actively using market volatility to identify investment opportunities that could enhance NAV ahead of the proposed merger [7] - 180 Degree Capital plans to continue managing merger-related expenses and day-to-day costs to minimize their impact on NAV [7] - The company is open to shareholder perspectives and aims to allocate capital towards growth rather than unnecessary expenses related to the merger [2][7]