Net Asset Value of $7.83 Per Share as of September 30, 2022
NEW YORK, Nov. 08, 2022 (GLOBE NEWSWIRE) -- SuRo Capital Corp. (“SuRo Capital”, the “Company”, “we”, “us”, and “our”) (Nasdaq: SSSS) today announced its financial results for the quarter ended September 30, 2022. Net assets totaled approximately $221.8 million, or $7.83 per share, at September 30, 2022 as compared to $9.24 per share at June 30, 2022 and $14.79 per share at September 30, 2021.
“As we previously mentioned, the first nine months of 2022 were the worst for equity markets in the past two decades. Simultaneously, there is a continued dramatic slowdown in the IPO market, with less than 40 IPOs in the US during the third quarter and more than 60% of IPOs being withdrawn, year to date. As macroeconomic challenges persist, we expect continued acceleration in the repricing of private securities. We are beginning to see bid-ask spreads start to narrow as increased discounts are reflected in the asking prices of private securities on the secondary markets. As a result, we believe continued pressure from declining macroeconomic conditions and the unfavorable IPO market will present compelling opportunities in the secondary market. Our considerable cash and US treasuries position of approximately $140.0 million allows us to be opportunistic in evaluating new, late stage, high-growth companies at increasingly compelling valuations,” said Mark Klein, Chairman and Chief Executive Officer of SuRo Capital.
“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. Subsequent to quarter-end, the Board has extended the Share Repurchase Program through October 31, 2023,” Klein concluded.
Investment Portfolio as of September 30, 2022
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 – with an aggregate fair value of approximately $157.7 million, excluding US treasuries. The Company’s top five portfolio company investments accounted for approximately 62% of the total portfolio at fair value as of September 30, 2022.
Top Five Investments as of September 30, 2022
| Portfolio Company($ in millions) | Cost Basis | Fair Value | % of Total Portfolio | |||
| Course Hero, Inc. | $ | 15.0 | $ | 56.7 | 35.9 | % |
| Blink Health, Inc. | 15.0 | 10.8 | 6.8 | |||
| Orchard Technologies, Inc. | 10.5 | 10.5 | 6.7 | |||
| Architect Capital PayJoy SPV, LLC | 10.0 | 10.0 | 6.3 | |||
| StormWind, LLC | 6.4 | 9.7 | 6.2 | |||
| Total | $ | 56.9 | $ | 97.7 | 61.9 | % |
Third Quarter 2022 Investment Portfolio Activity
During the three months ended September 30, 2022, SuRo Capital funded the following new and follow-on investments (excluding US treasuries):
| 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 |
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(1) Investment made through SuRo Capital Sports, LLC.(2) Represents a follow-on investment.(3) On and effective August 5, 2022, SuRo Capital notified Forge Global, Inc. of its intent to net exercise via cashless settlement its 230,144 common warrants in Forge Global, Inc. into 53,283 shares of Forge Global, Inc.'s public common stock, pursuant to the net exercise formula in the warrant agreement. The exercise was effectuated on September 30, 2022.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 | |||