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 second quarter ended
June 30, 2024.
“As we have previously mentioned, we remain
incredibly enthusiastic about both our investment pipeline and our
current portfolio as the IPO market strengthens and new
opportunities at compelling valuations continue to come to light.
We continue to actively execute on these opportunities. During the
second quarter, we completed a $10.0 million investment in Canva,
Inc., a leading design software and collaboration platform with
over 170 million monthly users, and a $15.0 million investment in
CW Opportunity 2 LP, an SPV invested in CoreWeave, Inc., an AI
cloud computing provider offering a suite of NVIDIA GPUs on top of
its fast and flexible infrastructure,” said Mark Klein, Chairman
and Chief Executive Officer of SuRo Capital.
“With these exciting new additions to our
portfolio, and nearly $55.0 million in investable capital, we
remain steadfast in our belief that there continue to be
high-quality opportunities available at attractive prices that
allow us to be both opportunistic and judicious with the deployment
of capital,” Mr. Klein continued.
“As we have consistently demonstrated, SuRo
Capital is committed to initiatives that enhance shareholder value,
and we believe the market is currently undervaluing our portfolio.
Given the discount our stock has traded at compared to net asset
value per share, we believe our recently completed Modified Dutch
Auction Tender Offer was an efficient and accretive deployment of
capital. As announced in the first quarter and executed during the
second quarter, the Modified Dutch Auction Tender Offer resulted in
the purchase of 2.0 million shares of common stock for $4.70 per
share. Further, we continue to monitor leveraging the remaining
$20.7 million authorized under our active Share Repurchase
Program,” concluded Mr. Klein.
As previously reported, SuRo Capital’s net
assets totaled approximately $181.7 million, or $7.17 per share, at
March 31, 2024, and approximately $186.7 million, or $7.35 per
share, at June 30, 2023. As of June 30, 2024, SuRo Capital’s net
asset value is estimated to be between $6.70 to $7.20 per share,
based on presently available information.
Investment Portfolio Update
As of June 30, 2024, SuRo Capital held positions
in 39 portfolio companies – 35 privately held and 4 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 US treasuries:
|
|
|
|
Portfolio Company |
Investment |
Transaction Date |
Amount |
Canva, Inc. |
Common Shares |
4/17/2024 |
$10.0 million |
CW Opportunity 2 LP |
Class A
Interest |
5/7/2024 |
$15.0
million |
|
|
|
|
During the three months ended June 30, 2024,
SuRo Capital exited or received proceeds from the following
investments, excluding short-term US treasuries:
|
|
|
|
Portfolio Company |
Transaction Date |
Net Proceeds |
Realized Gain |
Architect Capital PayJoy SPV, LLC(1) |
6/28/2024 |
$10.0 million |
$- |
True Global Ventures 4 Plus Pte Ltd |
6/28/2024 |
$0.2
million |
$- |
_____________(1) On June 28, 2024, SuRo Capital redeemed its
Membership Interest in Architect Capital PayJoy SPV, LLC.
SuRo Capital’s liquid assets were approximately
$57.6 million as of June 30, 2024, consisting of cash and
securities of publicly traded portfolio companies not subject to
lock-up restrictions at quarter-end.
As of June 30, 2024, there were 23,378,002
shares of the Company’s common stock outstanding.
Modified Dutch Auction Tender
Offer
On February 14, 2024, our Board of Directors
authorized a modified Dutch Auction tender offer (the “Tender
Offer”) to purchase up to 2.0 million shares of our common stock at
a price per share not less than $4.00 and not greater than $5.00 in
$0.10 increments, using available cash. In accordance with the
Tender Offer, following the expiration of the Tender Offer at 5:00
P.M. Eastern Time on April 1, 2024, the Company repurchased
2,000,000 shares at a price of $4.70 per share, representing 7.9%
of its outstanding shares. The per share purchase price of properly
tendered shares represents 65.6% of net asset value per share as of
March 31, 2024.
Share Repurchase Program
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.
Since inception of the 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 does not include repurchases
under various tender offers during this time period. The dollar
value of shares that may yet be purchased 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 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 second
quarter ended June 30, 2024 results in August 2024.
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 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 X, LinkedIn, and at www.surocap.com.
ContactSuRo Capital Corp.(212)
931-6331 IR@surocap.com
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