Crossroads Capital Announces Plan Intended to Maximize Shareholder Value
25 Janvier 2016 - 3:44PM
Business Wire
Company to Pursue the Sale of Its Portfolio
Investments
Board Approves Amendment to Stock Repurchase
Program
Crossroads Capital (Nasdaq: XRDC) announced today it will pursue
the sale of its existing portfolio investments with the intention
of distributing cash proceeds to shareholders and that it has
amended its investment objective to now be the preservation of
capital and maximization of shareholder value.
Since its election, the new Board has reduced expenses and
conducted a comprehensive review of the portfolio investments made
by former management, having explored alternatives to maximize
shareholder value. Crossroads will immediately pursue the sale of
its existing portfolio investments, limit expenses and deploy
surplus cash as appropriate, including into yielding investments to
offset operating expenses. While the Board plans to distribute cash
proceeds to shareholders from the sale or other monetization of
portfolio investments, no assurance can be given regarding the
timing of or values realized from such transactions. Further, while
the Board will adhere to its previously announced determination not
to invest in new venture companies, the Company may consider making
opportunistic follow-on investments in its existing portfolio
companies. The Board reserves the right to modify or terminate this
plan at any time or to consider additional strategic
alternatives.
Andrew Dakos, Chairman of the Board of Directors of Crossroads
and a principal of its largest shareholder, said, “This decision
was made after considerable analysis, review and deliberation. Both
management and the Board believe this is the most efficient way to
deliver the Company’s underlying value to our shareholders.”
Crossroads’ Board previously authorized a program to repurchase
shares in the open market or through privately negotiated
transactions, at management’s discretion. This authorization
expires May 10, 2016, but may be extended, modified or discontinued
at any time for any reason. The Board recently amended the
program to allow for greater flexibility, by eliminating the
current routine “blackout” periods during which the Company is
prohibited from purchasing shares, and increasing the size of the
program from $1 million to $2 million. The Board and management
believe that to the extent repurchases are made at current market
levels they should be accretive to Crossroads’ net asset value per
share. Crossroads currently has approximately $14.1 million or
$1.46 per share in cash and cash equivalents.
About Crossroads Capital, Inc.
Crossroads Capital, Inc. (www.xroadscap.com) is a closed-end
fund regulated as a business development company under the
Investment Company Act of 1940.
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 Crossroads
Capital’s current beliefs, and a number of important factors could
cause actual results to differ materially from those expressed in
this press release, including the factors set forth in “Risk
Factors” set forth in Crossroads Capital’s Form 10-K and Form 10-Q
filed with the Securities and Exchange Commission (“SEC”), and
subsequent filings with the SEC. Please refer to Crossroads
Capital’s SEC filings for a more detailed discussion of the risks
and uncertainties associated with its business, including but not
limited to the risks and uncertainties associated with investing in
micro- and small-cap companies. Except as required by the federal
securities laws, Crossroads Capital undertakes no obligation to
revise or update any forward-looking statements, whether as a
result of new information, future events or otherwise. The
reference to Crossroads Capital’s website has been provided as a
convenience, and the information contained on such website is not
incorporated by reference into this press release.
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Investor Relations Contact:Crossroads CapitalBen H.
HarrisChief Executive Officer and President(402)
261-5345ben@xroadscap.com
Crossroads Capital, Inc. (NASDAQ:XRDC)
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