SuRo Capital Corp. Fourth Quarter and Fiscal Year 2022 Preliminary Investment Portfolio Update
18 January 2023 - 12:00AM
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 fourth quarter and
fiscal year ended December 31, 2022.
“2022 has been well documented as one of the
worst years for equity markets in decades. However, as we move into
the new year with approximately $125 million of investable capital,
we stand ready to continue investing in both primary and secondary
opportunities for later-stage, high-growth companies at what we
believe will be compelling valuations. To that end, during the
fourth quarter of 2022, we completed a $10 million primary
investment in Locus Robotics Corp., a leader in autonomous mobile
robots (AMR) for fulfillment and distribution warehouses," said
Mark Klein, Chairman and Chief Executive Officer of SuRo
Capital.
Klein concluded, “Based on information presently
available, for the quarter and year ended December 31, 2022, we
anticipate SuRo Capital’s net asset value to be approximately $7.15
to $7.65 per share.”
As previously reported, SuRo Capital’s net
assets totaled approximately $221.8 million, or $7.83 per share, at
September 30, 2022, and approximately $364.8 million, or $11.72 per
share at December 31, 2021. As of December 31, 2022, SuRo Capital’s
net asset value is estimated to be between $7.15 to $7.65 per
share.
As of December 31, 2022, there were 28,429,499
shares of the Company’s common stock outstanding.
Investment Portfolio Update
As of December 31, 2022, SuRo Capital held
positions in 39 portfolio companies – 33 privately held and 6
publicly held, some of which may be subject to certain lock-up
provisions.
During the three months ended December 31, 2022, SuRo Capital
made the following investments:
Portfolio Company |
Investment |
Transaction Date |
Amount |
Locus Robotics Corp. |
Series F Preferred |
11/30/2022 |
$10.0 million |
YouBet Technologies Inc.
(d/b/a FanPower) (1) |
Series Seed-2 Preferred |
11/17/2022 |
$250,000 |
___________________ |
(1) |
Represents a
follow-on investment made through SuRo Capital Sports, LLC. |
During the three months ended December 31, 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) |
Kahoot! ASA (2) |
10/19/2022 |
61,367 |
$2.12 |
$0.1 million |
($0.2 million) |
NewLake Capital Partners,
Inc.(3) |
Various |
2,375 |
$17.86 |
<$0.1 million |
<($0.1 million) |
Rent the Runway, Inc.(4) |
Various |
150,000 |
$2.96 |
$0.4 million |
($1.8 million) |
Residential Homes For Rent,
LLC (d/b/a Second Avenue)(5) |
Various |
N/A |
N/A |
$0.3 million |
$- |
Rover Group, Inc.(6) |
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 December 31, 2022, SuRo
Capital held 38,305 remaining Kahoot! ASA public common
shares. |
(3) |
As of December 31, 2022, SuRo
Capital held 229,758 remaining NewLake Capital Partners, Inc.
public common shares. |
(4) |
As of December 31, 2022, SuRo
Capital held 79,191 remaining Rent the Runway, Inc. public common
shares. |
(5) |
During the three months ended
December 31, 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. |
(6) |
As of October 11, 2022, SuRo
Capital had sold its remaining public common shares of Rover Group,
Inc. |
Subsequent to year-end, through January 16,
2023, SuRo Capital made the following follow-on investments:
Portfolio Company |
Investment |
Transaction Date |
Amount |
Orchard Technologies, Inc. |
Series 1 Senior Preferred |
1/13/2023 |
$2.0 million |
Subsequent to year-end, through January 16,
2023, SuRo Capital exited the following investments:
Portfolio Company |
Transaction Date |
SharesSold |
Average Net Share Price(1) |
NetProceeds |
Realized Loss |
Kahoot! ASA (2) |
1/4/2023 |
25,000 |
$2.01 |
$0.1 million |
($0.1 million) |
Rent the Runway, Inc.(3) |
1/4/2023 |
79,191 |
$3.05 |
$0.2 million |
($1.0 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 January 16, 2023, SuRo
Capital held 13,305 remaining Kahoot! ASA public common
shares. |
(3) |
As of January 4, 2023, SuRo
Capital had sold its remaining public common shares of Rent the
Runway, Inc. |
|
|
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 fourth
quarter and fiscal year ended December 31, 2022 results in March
2023.
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)
931-6331 IR@surocap.com
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