MONTCLAIR, N.J., July 01, 2024 (GLOBE NEWSWIRE) — 180 Degree Capital Corp. (NASDAQ: TURN) (“180 Degree Capital”) noted today the announcement by its portfolio company, Synchronoss Technologies, Inc. (SNCR), that SNCR has opportunistically retired at discounted prices its outstanding Series B Preferred Stock and $19.7 million of its outstanding 8.375% Senior Notes due 2026 (“Senior Notes”) funded by a new $75.0 million term loan with alternative credit manager, AS Birch Grove. SNCR reported that the combined transactions are expected to result in a $7.3 million improvement to its capital structure plus approximately $10.6 million in pre-tax cost savings. The announcement can be viewed at https://synchronosstechnologiesinc.gcs-web.com/news-releases/news-release-details/synchronoss-technologies-significantly-improves-capital.

“We would like to congratulate the team at SNCR for taking advantage of a timely opportunity to eliminate its outstanding preferred stock while also reducing its outstanding debt at advantageous prices,” said Kevin M. Rendino, Chief Executive Officer of 180 Degree Capital. “We have always lived by the adage that the best time to do something is when you do not have to do anything. SNCR’s transformation into a cloud-only business, and its strong financial performance, allowed the company to attract the interest of a new lending partner, AS Birch Grove, thus enabling SNCR to take advantage of this unique opportunity to both deleverage and materially reduce expenses. This transaction is additive to SNCR’s ability to generate free cash flow in 2024 and beyond. We are proud to have had the opportunity to work directly with SNCR’s management team and board of directors to help achieve this important milestone.”

“This transaction is a great example of what 180 Degree Capital means by constructive activism,” added Daniel B. Wolfe, President of 180 Degree Capital. “Since our original investment in 2021, we developed a strong relationship with the impressive management team of SNCR. We welcomed the opportunity to join SNCR’s Board of Directors in December 2023 when SNCR’s common stock was trading at $4.66 because we believed that our complementary skill sets could help unlock value for all stakeholders of SNCR. We also believed that there were multiple catalysts that could drive material appreciation in value should they occur. This transaction is just one of these catalysts, and we believe its successful completion sets SNCR up well for the potential to achieve additional ones in 2024 and beyond. We could not be more excited about the potential for SNCR to be a material driver of value appreciation for 180 Degree Capital in the future as well.”

About 180 Degree Capital Corp.

180 Degree Capital Corp. is a publicly traded registered closed-end fund focused on investing in and providing value-added assistance through constructive activism to what we believe are substantially undervalued small, publicly traded companies that have potential for significant turnarounds. Our goal is that the result of our constructive activism leads to a reversal in direction for the share price of these investee companies, i.e., a 180-degree turn. Detailed information about 180 and its holdings can be found on its website at www.180degreecapital.com.

Press Contact:
Daniel B. Wolfe
Robert E. Bigelow
180 Degree Capital Corp.
973-746-4500
ir@180degreecapital.com

Mo Shafroth
RF Binder
Morrison.shafroth@rfbinder.com

Forward-Looking Statements

This press release may contain statements of a forward-looking nature relating to future events. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements reflect the Company’s current beliefs, and a number of important factors could cause actual results to differ materially from those expressed in this press release. Please see the Company’s securities filings filed with the Securities and Exchange Commission for a more detailed discussion of the risks and uncertainties associated with the Company’s business and other significant factors that could affect the Company’s actual results. Except as otherwise required by Federal securities laws, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties. The reference and link to the website www.180degreecapital.com and synchronosstechnologiesinc.gcs-web.com have been provided as a convenience, and the information contained on such websites are not incorporated by reference into this press release. 180 is not responsible for the contents of third-party websites.