SuRo Capital Corp. (“SuRo Capital”, the
“Company”, “we”, “us”, and “our”) (Nasdaq:
SSSS) today provided the following preliminary
update on its investment portfolio for the third quarter ended
September 30, 2022.
“The first nine months of 2022 were the worst
for equity markets in the past two decades. As macroeconomic
challenges persist, we expect continued acceleration in the
repricing of private securities. Given our considerable cash and
cash equivalents position of approximately $140.0 million, we
believe we are well positioned to be opportunistic in evaluating
new, late stage, high-growth companies at compelling valuations.
Based on information presently available, for the quarter ended
September 30, 2022, we anticipate SuRo Capital’s net asset value
per share to be approximately $7.55 to $8.05,” said Mark Klein,
Chairman and Chief Executive Officer of SuRo Capital. SuRo
Capital’s net asset value per share was $9.24 as of June 30, 2022
and $14.79 as of September 30, 2021.
Klein continued, “Given the continued volatility
in the public and private markets, we remain judicious in deploying
capital. During the third quarter 2022, we added one new company to
our portfolio, XGroup Holdings Limited (d/b/a Xpoint) (via SuRo
Capital Sports, LLC), and completed a follow-on investment in
Orchard Technologies, Inc.”
“SuRo Capital continues its commitment to
shareholder value-enhancing initiatives. Given the discount our
stock has traded at compared to net asset value per share, we
believe our active Share Repurchase Program and recent Modified
Dutch Auction Tender Offer to be efficient and accretive
deployments of capital. During the third quarter we initiated and
executed the Modified Dutch Auction Tender Offer, resulting in the
purchase of 2.0 million shares of common stock for $6.60 per share.
Year to date, in combination with the Board authorization of an
additional $15.0 million to the Share Repurchase Program, SuRo
Capital has repurchased over 3.0 million shares of common stock
with approximately $16.4 million remaining in the Board-authorized
Share Repurchase Program,” Klein concluded.
As previously reported, SuRo Capital’s net
assets totaled approximately $280.2 million, or $9.24 per share, at
June 30, 2022 and approximately $425.8 million, or $14.79 per
share, at September 30, 2021. As of September 30, 2022, SuRo
Capital’s net asset value per share is estimated to be between
$7.55 to $8.05 per share.
As of September 30, 2022, there were 28,333,661
shares of the Company’s common stock outstanding.
Investment Portfolio Update
At September 30, 2022, SuRo Capital held positions in 39
portfolio companies – 32 privately held and 7 publicly held, some
of which may be subject to certain lock-up provisions.
During the three months ended September 30, 2022, SuRo Capital
made the following investments:
Portfolio Company |
Investment |
Transaction Date |
Amount |
XGroup Holdings Limited (d/b/a Xpoint)(1) |
Convertible Note |
8/17/2022 |
$1.0 million |
Orchard Technologies,
Inc.(2) |
Simple Agreement for Future Equity (SAFE) |
9/2/2022 |
$0.5 million |
Forge Global, Inc.(3) |
Common Shares |
9/30/2022 |
$0.9 million |
___________________ |
(1) |
Investment made through SuRo Capital Sports, LLC. |
(2) |
Represents a follow-on investment. |
(3) |
On September 30th, SuRo Capital net exercised its 230,144 common
warrants in Forge Global, Inc., to purchase 53,283 shares of Forge
Global, Inc.’s public common stock, at the warrants' strike price
of $3.98 per share. The warrants had an expiration date of November
9, 2025. |
During the three months ended September 30,
2022, SuRo Capital exited or received proceeds from the following
investments:
Portfolio Company |
Transaction Date |
Shares Sold |
Average Net Share Price(1) |
Net Proceeds |
Realized Gain/(Loss) |
Enjoy Technology, Inc.(2) |
Various |
947,297 |
$0.26 |
$0.2 million |
($5.3 million) |
NewLake Capital Partners,
Inc.(3) |
Various |
15,310 |
$17.37 |
$0.3 million |
<($0.1 million) |
Palantir Lending Trust SPV
I(4) |
7/14/22 |
N/A |
N/A |
$0.6 million |
$0.6 million |
Rent the Runway, Inc.(5) |
Various |
60,000 |
$5.00 |
$0.3 million |
($0.6 million) |
Residential Homes For Rent, LLC (d/b/a Second Avenue)(6) |
Various |
N/A |
N/A |
$0.3 million |
$- |
Rover Group, Inc.(7) |
Various |
257,192 |
$4.09 |
$1.1 million |
$0.3 million |
__________________ |
(1) |
The average net share price is the net share price realized after
deducting all commissions and fees on the sale(s), if
applicable. |
(2) |
As of August 12, 2022, SuRo Capital had sold all its public common
shares of Enjoy Technology, Inc. |
(3) |
As of September 30, 2022, SuRo Capital held 232,133 remaining
NewLake Capital Partners, Inc. public common shares. |
(4) |
On July 14, 2022, a final payment was received for the remaining
512,290 Class A common shares of Palantir Technologies, Inc. that
comprised the beneficial equity interest in underlying shares. The
realized gain from SuRo Capital's investment in Palantir Lending
Trust SPV I is generated by the proceeds from the sale of shares
collateralizing the repaid promissory note to Palantir Lending
Trust SPV I and attributable to the Equity Participation in
Underlying Collateral. |
(5) |
As of September 30, 2022, SuRo Capital held 229,191 remaining Rent
the Runway, Inc. public common shares. |
(6) |
During the three months ended September 30, 2022, approximately
$0.3 million was received from Residential Homes For Rent, LLC
(d/b/a Second Avenue) related to the 15% term loan due December 23,
2023. Of the proceeds received, approximately $0.3 million repaid a
portion of the outstanding principal and the remaining was
attributed to interest. |
(7) |
As of September 30, 2022, SuRo Capital held 106,854 remaining Rover
Group, Inc. public common shares. |
Subsequent to quarter-end, through October 11, 2022, SuRo
Capital exited or received proceeds from the following
investments:
Portfolio Company |
Transaction Date |
SharesSold |
Average Net Share Price(1) |
NetProceeds |
Realized Gain |
Rover Group, Inc.(2) |
Various |
106,854 |
$3.93 |
$0.4 million |
$0.1 million |
__________________ |
(1) |
The average net share price is the net share price realized after
deducting all commissions and fees on the sale(s), if
applicable. |
(2) |
As of October 11, 2022, SuRo Capital has sold all its public common
shares of Rover Group, Inc. |
Modified Dutch Auction Tender Offer
On August 1, 2022, our Board of Directors
authorized a Modified Dutch Auction Tender Offer (“Tender Offer”)
to purchase up to 2.0 million shares of our common stock at a price
per share between $6.00 and $7.00, using available cash. In
accordance with the Tender Offer, on September 12, 2022, the
Company repurchased 2,000,000 shares, at a price of $6.60 per share
representing 6.6% of its outstanding shares. The per share purchase
price of properly tendered shares represents 71.4% of net asset
value per share as of June 30, 2022.
Share Repurchase Program
Since inception of the Share Repurchase Program
in August 2017, SuRo Capital has repurchased over 5.8 million
shares of its common stock for an aggregate purchase price of
approximately $38.6 million.
On March 13, 2022, the Company’s Board of
Directors authorized a $15.0 million expansion of the Share
Repurchase Program to $55.0 million. Year to date, under the Share
Repurchase Program, the Company repurchased 1,008,676 shares of its
common stock for approximately $8.3 million. The dollar value of
shares that may yet be purchased by the Company under the Share
Repurchase Program is approximately $16.4 million. The Share
Repurchase Program is authorized through October 31, 2022.
Under the Share Repurchase Program, the Company
may repurchase its outstanding common stock in the open market
provided it complies with the prohibitions under its insider
trading policies and procedures and the applicable provisions of
the Investment Company Act of 1940, as amended, and the Securities
Exchange Act of 1934, as amended.
Preliminary Estimates and
Guidance
The preliminary financial estimates provided
herein are unaudited and have been prepared by, and are the
responsibility of, the management of SuRo Capital. Neither our
independent registered public accounting firm, nor any other
independent accountants, have audited, reviewed, compiled, or
performed any procedures with respect to the preliminary financial
data included herein. Actual results may differ materially.
The Company expects to announce its third
quarter results in November 2022.
Forward-Looking Statements
Statements included herein, including statements
regarding SuRo Capital's beliefs, expectations, intentions, or
strategies for the future, may constitute "forward-looking
statements". SuRo Capital cautions you that forward-looking
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
or implied in these statements. All forward-looking statements
involve a number of risks and uncertainties, including the impact
of the COVID-19 pandemic and any market volatility that may be
detrimental to our business, our portfolio companies, our industry,
and the global economy, that could cause actual results to differ
materially from the plans, intentions, and expectations reflected
in or suggested by the forward-looking statements. Risk factors,
cautionary statements, and other conditions which could cause SuRo
Capital's actual results to differ from management's current
expectations are contained in SuRo Capital's filings with the
Securities and Exchange Commission. SuRo Capital undertakes no
obligation to update any forward-looking statement to reflect
events or circumstances that may arise after the date of this press
release.
About SuRo Capital Corp.
SuRo Capital Corp. (Nasdaq: SSSS) is a publicly
traded investment fund that seeks to invest in high-growth,
venture-backed private companies. The fund seeks to create a
portfolio of high-growth emerging private companies via a
repeatable and disciplined investment approach, as well as to
provide investors with access to such companies through its
publicly traded common stock. SuRo Capital is headquartered in New
York, NY and has offices in San Francisco, CA. Connect with the
company on Twitter, LinkedIn, and at www.surocap.com.
ContactSuRo Capital Corp.(212)
931-6331IR@surocap.com
Media ContactBill
DouglassGotham Communications, LLCCommunications@surocap.com
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