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

Core Insights - 180 Degree Capital Corp. reported an average discount of approximately 18% between its estimated daily net asset value (NAV) per share and its daily closing stock price for May 2024, and 20% year-to-date through the end of May 2024, with a specific discount of 19% noted on May 31, 2024 [1][2] - The Board of Directors has established two measurement periods to evaluate the average discount to NAV, with potential actions including stock buybacks, cash distributions, or tender offers if the discount exceeds 12% [2] - The CEO highlighted an overall improvement in May 2024 for microcapitalization stocks and the company's holdings, despite heightened volatility, particularly for thinly traded stocks [3] Company Performance - Synchronoss Technologies, Inc. (SNCR), a portfolio holding, reported a positive Q1 2024, exceeding analyst estimates, but experienced significant stock price volatility post-earnings report [3] - The company aims for returns greater than 100% over a one-to-three year holding period, emphasizing that short-term volatility does not reflect the long-term health of its portfolio companies [3] Investment Strategy - 180 Degree Capital focuses on investing in undervalued small publicly traded companies, aiming for significant turnarounds through constructive activism [4] - The company believes there are material catalysts ahead in 2024 and beyond that could lead to value appreciation and growth in NAV [3]