Net asset value expected to be between $6.70 and $7.20 per share
NEW YORK, July 11, 2024 (GLOBE NEWSWIRE) — SLO CAPITAL CO., LTD. (“SuRo Capital”, “we”, “our”, “us”) (Nasdaq: SSSS) today provided the following preliminary update on its investment portfolio for the second quarter ending June 30, 2024:
“As we have previously stated, we remain very enthusiastic about both our investment pipeline and current portfolio as the IPO market strengthens and new opportunities at attractive valuations continue to emerge, and we continue to actively pursue these opportunities. In the second quarter, we closed a $10 million investment in Canva, Inc., a leading design software and collaboration platform with over 170 million monthly users, and a $15 million investment in CW Opportunity 2 LP, an SPV that has invested in CoreWeave, Inc., an AI cloud computing provider that offers a suite of NVIDIA GPUs on a fast, flexible infrastructure,” said Mark Klein, Chairman and Chief Executive Officer of SuRo Capital.
“The addition of these attractive new properties to our portfolio, and approximately $55 million in investable capital, strengthens our belief that high-quality investment opportunities at attractive prices will continue to exist and enable us to be agile and smart in allocating capital,” Klein continued.
“As we have consistently demonstrated, SuRo Capital is focused on initiatives to enhance shareholder value and we believe the market currently undervalues ​​our portfolio. Given that our shares are trading at a discount to our net asset value per share, we believe that our recently completed modified Dutch auction tender offer was efficient and capital accretive. The modified Dutch auction tender offer, announced in the first quarter and executed in the second quarter, resulted in the purchase of 2.0 million common shares at $4.70 per share. Additionally, we continue to monitor the utilization of the remaining $20.7 million authorized under our active share repurchase program,” concluded Mr. Klein.
As previously reported, SuRo Capital’s net assets were approximately $181.7 million, or $7.17 per share, as of March 31, 2024, and approximately $186.7 million, or $7.35 per share, as of June 30, 2023. Based on currently available information, we estimate that SuRo Capital’s net asset value as of June 30, 2024 will be between $6.70 and $7.20 per share.
Investment Portfolio Updates
As of June 30, 2024, SuRo Capital has investments in 39 portfolio companies, of which 35 are privately held and four are publicly held, some of which may be subject to certain lock-up provisions.
During the three months ended June 30, 2024, SuRo Capital made the following investments, excluding short-term U.S. Treasury securities:
|
Portfolio Companies |
investment |
Trading day |
amount |
|
Canva Inc. |
Common stock |
April 17, 2024 |
$10 million |
|
CW Opportunity 2 LP |
Class A Interest |
May 7, 2024 |
$15 million |
During the three months ended June 30, 2024, SuRo Capital exited or received gains from the following investments, excluding short-term U.S. Treasury securities:
|
Portfolio Companies |
Trading day |
Net income |
Realized Gains |
|
|
Architect Capital Payjoy SPV LLC(1) |
June 28, 2024 |
$10 million |
$- |
|
|
True Global Ventures 4 Plus Pte Ltd |
June 28, 2024 |
$200,000 |
$- |
|
_____________
(1) On June 28, 2024, SuRo Capital redeemed its membership interest in Architect Capital PayJoy SPV, LLC.
SuRo Capital’s liquid assets, approximately $57.6 million as of June 30, 2024, consist of cash and securities of publicly traded portfolio companies that are not subject to lock-up restrictions as of the end of the quarter.
As of June 30, 2024, the Company had 23,378,002 common shares issued and outstanding.
Modified Dutch Auction Bid
On February 14, 2024, the Company’s Board of Directors authorized a modified Dutch auction tender offer (the “Tender Offer”) to purchase up to 2,000,000 shares of the Company’s common stock at prices not less than $4.00 and not more than $5.00 per share in increments of $0.10, using cash on hand. Pursuant to the Tender Offer, following the expiration of the Tender Offer at 5:00 p.m. ET on April 1, 2024, the Company repurchased 2,000,000 shares, representing 7.9% of its outstanding shares, for $4.70 per share. The purchase price per share for shares properly tendered represents 65.6% of the Company’s net asset value per share as of March 31, 2024.
Share buyback program
Pursuant to the share repurchase program, the Company may repurchase its outstanding common shares in the open market, subject to compliance with the prohibitions under its insider trading policies and procedures and applicable provisions of the Investment Company Act of 1940, as amended, and the Securities Exchange Act of 1934, as amended.
Since initiating its share repurchase program in August 2017, SuRo Capital has repurchased over 6.0 million shares of its common stock for an aggregate purchase price of approximately $39.3 million. This amount does not include repurchases pursuant to various tender offers made during the period. The dollar value of shares that may be purchased in future by SuRo Capital under the share repurchase program is approximately $20.7 million. The share repurchase program is authorized through October 31, 2024.
Preliminary estimates and guidance
The preliminary financial estimates contained herein have not been audited 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 accountant has audited, reviewed, compiled or performed any procedures with respect to the preliminary financial data contained herein. Actual results may differ materially.
The company plans to announce financial results for the second quarter ending June 30, 2024 in August 2024.
Forward-Looking Statements
Statements contained herein, particularly statements regarding SuRo Capital’s beliefs, expectations, intentions and strategies for the future, may constitute “forward-looking statements.” SuRo Capital cautions that forward-looking statements are not guarantees of future performance, and actual results and developments may differ materially from those projected or implied in these statements. All forward-looking statements involve various risks and uncertainties, including the effects of market fluctuations that may adversely affect our business, portfolio companies, the industry and the global economy, which may cause actual results to differ materially from the plans, intentions and expectations reflected or implied in the forward-looking statements. Risk factors, cautionary and other conditions that 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 assumes no obligation to update forward-looking statements to reflect events or circumstances that may occur after the date of this press release.
About SuRo Capital Corp.
Slo Capital Corporation (Nasdaq: SSSS) is a publicly traded investment fund that seeks to invest in high-growth, venture capital-backed private companies. Through a repeatable and disciplined investment approach, the fund seeks to build a portfolio of emerging high-growth private companies while providing investors access to such companies through publicly traded common stock. SuRo Capital is headquartered in New York, NY with offices in San Francisco, CA. Connect with the firm on X, LinkedIn and the following links: home page.
contact
SLO CAPITAL CO., LTD.
(212) 931-6331
email address
