SuRo Capital Corp. has amended its at-the-market (ATM) offering program, incorporating Barrington Research Associates, Inc. as an additional sales agent, according to a recent Securities and Exchange Commission filing.
The amendment, dated today, enables the New York-based investment firm to potentially issue and sell up to $150 million in common stock through the ATM program.
The ATM program, initiated on July 29, 2020, with an initial cap of $50 million, was previously upsized to $150 million on September 23, 2020. The latest amendment signifies the company's intent to continue leveraging the ATM program to sell shares at prevailing market prices by engaging multiple agents.
As of today, approximately $98.8 million worth of shares remain available for sale under the program. The sales agreement stipulates that SuRo Capital may sell shares from time to time through the agents, who may also purchase shares as principals for their own accounts.
SuRo Capital, known previously as Sutter Rock Capital (NASDAQ:SSSS) Corp., GSV Capital Corp ., and NeXt Innovation Corp., specializes in growth equity investments. The company primarily targets technology and tech-enabled companies.
The shares are listed on the Nasdaq Global Select Market under the ticker SSSS for common stock and SSSSL for the company's 6.00% notes due 2026.
The offering of shares will be conducted in accordance with the prospectus supplement dated today and the base prospectus dated August 16, 2023, which are part of SuRo Capital's shelf registration statement declared effective by the SEC on the latter date.
The details of the sales agreement, including the roles and responsibilities of the sales agents, can be found in the company's SEC filings and the prospectus supplement. The legal opinion regarding the issuance and sale of the shares has been provided by Eversheds Sutherland (US) LLP.
This information is based on a press release statement and the investors are advised to refer to the full text of the SEC filing for a complete understanding of the terms of the ATM program and the amendment.
In other recent news, SuRo Capital Corp. announced its Q3 2024 earnings, revealing a strategic focus on artificial intelligence (AI) investments. The company reported a net asset value (NAV) of $157.4 million or $6.73 per share, with significant investments in AI companies such as OpenAI and CoreWeave.
During the latter half of the year, SuRo Capital allocated approximately $65 million to private firms, $55 million of which went to AI-centric entities. This decision positions AI as a substantial part of SuRo's portfolio, comprising 18% of its gross assets, a figure that increases to 23% post-quarter.
The company also highlighted the potential for upcoming IPOs from its portfolio companies, including CoreWeave, ServiceTitan, and Canva. CoreWeave, in particular, is expected to see substantial revenue growth.
Despite a decrease in NAV per share from $6.94 in Q2 to $6.73 in Q3, SuRo Capital's leadership remains confident in their current positioning and the potential for growth.
The firm's diversified investment themes and shareholder initiatives indicate a proactive approach to navigating the evolving market landscape. This strategy and recent developments reflect the company's optimism for the future of AI investments.
InvestingPro Insights
SuRo Capital Corp.'s recent amendment to its ATM offering program comes amid a period of significant stock performance. According to InvestingPro data, the company has seen strong returns over various timeframes, with a 35% price increase over the last month and a 43.62% gain over the past three months. This positive momentum is further reflected in the stock's current price, which stands at 92.83% of its 52-week high.
Despite these gains, InvestingPro Tips highlight that SuRo Capital's valuation implies a poor free cash flow yield, and the company was not profitable over the last twelve months. This context adds importance to the company's decision to amend its ATM program, potentially providing additional financial flexibility.
The company's market capitalization stands at $118.74 million, with a revenue of $6.48 million for the last twelve months as of Q2 2024. While SuRo Capital experienced strong revenue growth of 39.26% over this period, it's worth noting that the most recent quarter (Q2 2024) saw a revenue decline of 25.13%.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. The InvestingPro product includes a total of 13 tips for SuRo Capital, providing a deeper understanding of the company's financial position and market performance.
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