Q3 2021 SuRo Capital Corp Earnings Call

[laughter].

That is enjoyed it.

[noise] [noise]. Please stand very good day, ladies and gentlemen, and thank you for standing by welcome to Sarah Capital Third quarter 2021 earnings Conference call. During today's presentation, all parties will be in a listen only mode. Following the.

Presentation, a conference will be open for questions.

This call is being recorded today Wednesday November 3rd 2021, I would now turn the conference over to today's Speaker Jackson Stone a thorough capital. Please go ahead Sir.

Thank you for joining us on today's call I'm joined today by the Chairman and Chief Executive Officer of Cheryl Capital, Mark Klein and Chief Financial Officer, Alison Green. Please note that a slide presentation corresponding to today is prepared remarks by management. It is available on our website at www Dot <unk> dot com under Investor Relations.

Events and presentations.

Today's call is being recorded and broadcast live on our website Www Dot <unk> Dot Com replay information is included in our press release issued today. This.

Cause the property of zero capital and the unauthorized reproduction of this call in any form mystically prohibitive.

I would also like to call your attention to customer disclosures in today's earnings call and in today's earnings press release regarding forward looking information statements Menaces conference call and webcast may constitute forward looking statements, which relate to future events or future performance or financial condition. These statements are not guarantees ever future performance or future financial condition or.

Results and involve a number of risk estimates on uncertainties, including the impact of COVID-19, eidetic in any market volatility that may be detrimental to our business our portfolio companies or industries in 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.

<unk>.

Actual results may differ materially from those in the forward looking statements as a result of a number of factors, including but not limited to those described from time to time in the company's filings with the SEC Manny.

Management does not undertake to update such forward looking statements unless required to do so by law.

To obtain copies of sterile capitals latest SEC filings. Please visit our website at www Dot <unk> dot com for the <unk> web site as at Cirque Dot Gov.

Now I would like to turn the call over to Mark Klein.

Thank you Jackson good afternoon, and thank you for joining US we are pleased to share the results of serve capitals third quarter of 2021.

This has been one of the most exciting quarters to date for for.

Including notable exits and exciting investment opportunities in multiple different vehicles.

This quarter three additional portfolio companies announced their intentions to become publicly traded to a speck merger, making a total of five spec merger announcements in 2021.

In addition to the spec mergers three of our portfolio companies announce intentions to be acquired.

And two had completed acquisitions as of quarter and.

As we make notable exits we are excited to deploy capital and compelling new high growth opportunities and have added seven new companies to our portfolio and this quarter alone.

I am I am excited to share more details on these events before handing the call over to Ellison Green for a brief financial overview at the conclusion of our remarks, we will open the call for questions.

Let's start with slide three.

This quarter Cyril capital again reached our highest dividend adjusted net asset valuable value per share since inception.

Surpassing the records we set in both Q2 2021 and Q1 of 2021.

At the end of the quarter capital had a net asset value of approximately $426 million or $14.79 per share.

Which was near the top of the anticipated range.

That we posted in our pre release.

$14.79 per share.

Net asset value is inclusive of a $2.25 per share dividend declared and paid during the quarter.

This net asset value per share represents a 48.

Increase from the $14 31 day.

Dividend adjusted net asset value at the end of the second quarter.

Consistent with our desire to be shareholder friendly and our continued practice of distributing realized gains on November 2nd 2021. So capitals board of directors declared a $2 per share dividend to shareholders and approved an extension of the <unk>.

Sure repurchase program to October 31st 2022.

This dividend will be payable on December 30th 2021 to shareholders of record on November 17th 2021.

Our board is again offering shareholders the option to elect to take as much as 100% of their dividend in stock.

And his cap the aggregate cash dividend, 250% of the total dividend payable.

This brings the aggregate dividends declared are paid in 2020 $127.25 per share.

Later in the call Allison will walk through in detail the election process of this cash and stock dividend.

Depending on the portfolio activity for the remainder of the year. The board will evaluate declaring an additional dividend payable in January of 2022.

Please turn to slide for for review of our top five positions.

Several capital's top five positions as of September 30th or course hero Coursera Forge next door and Blake health.

These positions accounted for approximately 54% of the investment portfolio at fair value.

Additionally, as of September 30th or top 10 physicians accounted for approximately 73% of our portfolio.

First I want to highlight our investment in course hero now our largest position.

Over the last year course hero has focused on growing their platforms community and pursuing acquisitions that expand their already comprehensive catalog of students study materials.

This initiative began in October 2020, with their acquisition of symbol lab a platform that helps students solve complex mathematical equations and continued in June 2021, with their acquisition of lit charts, a platform that helps make learning literature more accessible since then <unk> has grown they're off.

Brings by acquiring quillback and AI, writing tool that helps people reconstruct the writing to be more concise and cliff notes a library of literature study guides.

Before the two most acquisitions Tech Crunch estimated coursera would hit between two and $3 million paid subscribers in 2021 up from 1 million subscribers last year.

We believe these acquisitions will further bolster paid subscriptions and support cause heroes goal of becoming the leading comprehensive platform for study materials.

As previously discussed on March 31, or second largest position coursera executed an initial public offering and begin trading on the New York stock exchange, where Sarah price at $33 per share the top of their range.

In the third quarter alone sales of our public shares of course, there are had generated nearly $33 million of net proceeds in approximately $28.5 million and realized gains two.

To date monetization of our position and Coursera is generated nearly $112 million in net proceeds and over $96.3 million and realized gains.

We have sold substantially all of our Coursera investment.

We anticipate selling the de Minimis remainder of our course their position in the coming days.

In addition to <unk> and of course, there. We have also seen strong poor performance from our overall portfolio.

During the third quarter, three portfolio companies announced pending spec merger.

One company completed its back merger two companies announcer completed and IPO and two companies were required.

During the third quarter Forge aspiration and next door announced plans to merge with specs on September 13th Forge announced a plan to merge with motive capital a fintech focus back at a combined equity value of up to $2 billion earlier. This year forge was valued at 700.

Post money, making this deal there Unicorn debut this pending transaction resulted in a 10 and a half million dollars right up over 100% increase in our evaluation of forged compared to last quarter.

The forge motive capital spec merger is expected to close in the fourth quarter of 2021 or as late as the first quarter of 2022, and resulting gross proceeds of 532 $5 million for the combined company.

Between January 1st of 2018 in June 30th of 2021, four just seen a 225% increasing its customer base and 114% increase in distinctive private companies traded with nearly 400000 registered users and 122000 and.

Forge has driven over $10 billion in volume across 19000 transactions were.

We are excited by four just success over the years and look forward to the successful conclusion of their business combination.

On August 18th Aspiration also announced a plan to merge with enterprises three financial partners are Fintech focus back at an equity value of $2.3 billion aspiration raised $200 million pipe associated with this transaction.

[noise] pending transaction is expected to close in the fourth quarter of 2021 or as late as the first quarter of 2022.

Aspiration offers a range of sustainable banking services credit cards, and investment projects products and both more than 5 million participating members as of June 2021, the company at a revenue run rate in excess of $100 million and saw a seven X growth and since the past year.

We are excited by this milestone for aspiration and believe they have emerged as a leader of ESG focus fintech.

Finally on July 6th next door announced plans to merge with coastal adventures acquisition too.

Equity value for $3 billion next door raised $270 million pipe associated with this transaction yes.

Yesterday stockholders approved the transaction the merger is expected to close on November 5th with a combined entity trading on the New York stock exchange under the symbol kind beginning November 8th.

In addition to the spec mergers announced this quarter, we saw one portfolio complete the merger and become publicly traded as previously discussed on February 11th Zero capital portfolio Company Rover announced plans to merge with never Nebulae terrible acquisition corporate spec sponsored by true and capital stockholders approved.

The business combination and the transaction was close on July 30th the combined entity now trades on the NASDAQ under the ticker symbol or Ovr the transaction value. The company at an enterprise value of $1.35 billion and provided approximately $240 million in gross proceeds to the company or shares of the public.

Of the public common stock of Rover are currently subject to certain locker provisions, we anticipate they will expire during the first quarter of 2022.

We ask that we are excited about this transaction and congratulate Rover and the successful close of this fact.

In addition.

<unk> two spec mergers we saw one company announce and another company execute the initial public offering this quarter.

On August 20th New Lake Capital Partners completed on IPO and began trading under the symbol and LCP on OTC Culex, the IPO raised $102 million a share price of $26 a share as of September 30th Zero capital shares new like are not subject to any lock.

Restrictions, we will liquidate this position consistent with prior practices as market conditions allow.

On October 4th rent the runway announced that it filed for an IPO at a range of 18 to $21 per share on October 27th day, Preiser IPO at $21 per share and began trading on the NASDAQ under the symbol Ari.

At a price of $23 a share.

IPO was led by Goldman Sachs, Morgan Stanley and Barclays and elevated the value of rent the runway to $1.5 billion, we expect our shares of rent the wrong way to become freely tradable and early Q2 2022, when the license expires.

In addition to these major milestones two of our Port Folio companies were required during the third quarter.

On August 30th 2021, you to me recently minted public learning in online teaching platform announced that it acquired Corp view for an undisclosed amount.

On September 2nd conclude a publicly traded global education Technology company announced that it acquired clever.

As previously mentioned in our pre release in late September report from multiple sources alleged significant and proprieties by Aussie media given these serious allegations as of September 30th we valued our investment in as humidity media at zero.

So many successful port portfolio company transactions completed in the third quarter and anticipated to be completed in near future have provided significant cash flows to fund high growth well scrutinized and promising new investment.

During the third quarter, we judiciously added seven new portfolio companies.

On August night, we invested $10 million, an orchard technologies series the preferred shares.

<unk> is a vertically integrated property technology company competing in the trade in and cash offers market.

Tortures move first product allows homeowners the ability to buy their home before selling their own home.

While still unlikely the equity they have built up in their existing home.

And the current real estate climate is more important than ever to have as few contingencies attach with offers as possible and orchard as a market leader removing these barriers for homebuyers orchard plans to expand to for new markets in 2022, as well as launch new surface surfaces to offer millions more.

Buyers, a better way to purchase dream home over the past year Orcher. It has doubled their footprint launch Orchard insurance and introduced concierge service the repairs and updates homes on the behalf of homeowners before sale and no upfront cost in September Orcher announced that raise $100 million at a valued.

<unk> or over $1 billion in around led by accomplice with participation with existing investors as well.

We have evaluated several business models and the property technology sector and believe orchards model.

Many of the pain points for consumers with a more capital efficient and less risky model then ibuyers.

In other similar companies in the space as such we believe Orchard is uniquely poised to grow and achieve success in both bull and bear housing markets compared to many of its peers and the prop tech sector.

Turn to slide eight during the third quarter. We also made a 10 million dollar investment in the common shares her borrow money egg borrow is a nationally chartered bank developing a branchless digitally native financial platform to improve the mobile banking experience.

Borrow offers various services, including financial insights and analysis of spending real time budgeting and forecasts of cash flow direct positive deposits online bill payment and other financial applications borrows target market is.

He is the 180 million Americans borrow abused it underserved and overcharged by traditional financial Tuitions borrowed bleeds traditional banks are unable to profitably served this massive segment of consumers who have modest or no savings.

Due to their legacy cost structure borrowed leads traditional banks legit charge fees.

Lloyd losing money on these particular client, meaning customers with the least money pay the most and be relative to their assets for their income.

Borrow has no monthly account minimum balance no debit card replacement.

No foreign action fees, no AC bank transfer fee that no at&t's or.

In addition, unlike other neobank to use a sponsor bank model by partnering with smaller banks of banking services as a nationally chartered bank operate a lower cost structure than other neobank pass long these savings to consumers.

In September <unk> announced that it raised $510 million series equity round at a $2.5 billion valuation. This is according to tech crunch.

So invested $10 million in the series era, which was led by lone Pine capital with participation from our best is Warburg Pincus, TPG fries fun balancing point, Apple and others, including new investors Declaration partners and Blackrock.

Please turn to slow.

As previously discussed Sarah capital Sports the $10 million wholly owned subsidiary of Sarah capital created to take advantage of the significant tell.

And the sport.

Since inception in March 21, Serb capital has been creating a robust pipeline BTB and beat to see players across several key vertical including.

<unk>.

Technology band engagement and differentiated partners.

Operator in addition to our initial investment and better view since June 30th we made two additional investment so capital first sports. The first is pick up which allows publishers to embed pop like predictions within their content.

Content users create profiles, allowing them to track the accuracy of their pick and earn prizes from sports books and other affiliates. The gamification of content represents a new era and engagement where the experience is now centered around the fan versus the previous iteration of panic atrium centered around shares.

Light and comments social media.

During the third quarter.

We invested in pick ups.

Theories C. Two preferred shares as part of the round led by K B partners and drive by drafting.

The second investment Compliable provides a compliant software solution it makes managing maintaining and completing gaming licences across multiple states and jurisdictions easy and.

Compliable software platform and tools provide customers with both significant and cost time and cost savings allow operators to focus on entering new markets and establishing a presence in the growing sports betting landscape as.

Is the complexity of licensing with a real gaming market continue we believe compliable will be an essential part of how operators vendors and regulators maintain compliance with a constantly changing and very regulatory environment.

And I'm in October we invested Inc.

Theories C. Four preferred shares as part of their seed extension.

Led by better capital.

Looking ahead, we believe our portfolio is as well positioned as ever to drive long term value through both exit an ongoing strategic investments and compelling industries and opportunities.

Not readily available to public investors, who believe are healthy cash balance with a strong position.

Play against this high volume of attractive opportunities.

Thank you.

Where your attention and with that all handed over talent.

Thank you Mike.

Would like to Walmart update with a more detailed review of our third quarter investment activity in financial Adult September 30th 2021, including recently declared dividend and our current liquidity position.

Alright, I will review our investment activity, please turn to fight <unk>.

During the quarter, we invested a total of $31.4 million and new and follow an embankment.

New investments during the third quarter include.

$10 million investment in theory, the preferred shares or technology, a 10 million dollar investment in common shares her borrow money.

An additional $7.4 million and funded capital called to complete our $10 million commitment to architect capital P. Joy TB at 2.5 million dollar investment in the preferred chairs patriotic ink.

And approximately 700000 dollar investment I'm, a total 2 million dollar limited partner commitment and true global ventures for investment Bun.

And approximately 500000 dollar investment in the theory T. Two preferred shares of you bet technology doing business with pick up any 250000 dollar investment in the shower unit of artsy sponsor I'll see the Panther vehicles off the acquisition Corp.

2021 investments through September 30th total approximately $71 million, please turn to bite 11.

This might highlight exit made and proceed proceeds received during the third quarter.

I do believe during the third quarter, we sold 837181 of our course narrow common shared for approximately $32.8 million net proceeds resulting in a net realized gain of approximately $28.6 million.

These sales during the third quarter or in addition to the accident at 25% of our original questionnaire I position at the time of IPO for network $37 million and in that realized gain of approximately $26.9 million made during the second corner.

I will review our course, there is now subsequent to corner and and the date on the next slide.

August 30th 2021, you to me Ah recently publicly traded global Education Technology Company announced it would acquire ink for Corp. You.

As a result of the acquisition, we received approximately $6 million for a net gain of approximately $2 million increase of approximately $315000.

<unk>.

On September 2nd.

And another publicly traded global Education Technology company announced that would acquire clemmer.

Who acquired clever for cash stock and other consideration contingent on various or not provision.

As a result of the acquisition, we received approximately $3 million in cash proceeds and chairs.

Resulting in a current not realize gander of approximately $1 million inclusive of approximately $744000 held in escrow anticipated additional considerations subject to earn up revision. Another contingency. It has not been included here.

Additionally, during the quarter, we received approximately $343000 in proceeds and second Avenue related to the principal repayment an interest on the 15% term long do December of 2023.

Finally during the third quarter, we realized approximately $295000 related to our June 2020 investment and talents here lending trapped FTB. These additional proceeds are you attributed directly to the equity participation in the underlying collateral as of today 512290 shares the parents are common stock.

Rising the underlying collateral to which we retained an equity interest remains to be thought as of December 31st 2020, the balance of the loan and all guaranteed address had been fully repaid.

That would be 21 realization through September 30th resulted in approximately $199.6 million net proceeds and $171.7 million and that relate game or $172 $3 million, including adjustment to amount currently holding Astro. Please transfer fight sparkle.

Subsequent to corner and thorough capital via throw capital. Many 1 million dollar equity investment in theory or preferred shares a brief break Inc, which is doing business at Compliable. This is the third embankment zero capital for I had made an infection early 2021.

In 2021 to date, we have invested a total of $71.7 million in new I follow on them.

We've also made additional realizations subsequent to quarter right.

As previously alluded to through yesterday, we spelled an additional 1 million 409090 of course, there are common chairs for approximately $48.5 million proceed resulting in a net realized gain of approximately $48 million.

We anticipate monetization of the remaining 100000 course nourish area to be completed prior to the filing of our Form 10-Q for the quarter ended September 30th 2021, and the next few days.

Really yesterday's down we have received a total of nearly $112 million net proceeds resulting in that relies gained over $96.3 million from our course air conditioning.

Additionally, we began monetization of our public common shares hilltops.

Subsequent to corner right through yesterday, we sold 18157 go fast common shares for approximately $229000 in that proceeds resulting in a net realized gained a approximately 48.

We plan to monetize the remaining 981843 scaled back chairs consistent with our buyer practices as the market allowed.

Finally, subsequent a quarter and we received approximately $111000 in proceeds to second Avenue related to the pet for a payment on the 15% term long do December of 2020, great and.

In 2021 to date, we have received a total of approximately $248.4 million in net proceeds resulting in over $212 million in that relies game.

Please turn to 513.

Segmented by six gentleman that maintain the top allocation of our investment portfolio at quarter end, it's the education technology, representing approximately 46% of the investment portfolio at fair value.

Angela Technology and service it was the second largest category representing approximately 25% of the portfolio.

The market places category accounted for approximately 18% of our investment portfolio and approximately 6% of our portfolio is invested in social mobile company.

Big data cloud accounted for approximately 4% of the fair value of our portfolio and sustainability accounted for less than 1% of the fair value of our portfolio as of September 30th.

Please turn to 515.

There a police report we ended the third quarter of 2021 with an N E b per share a $14.99.

A breakdown if any of you <unk> as a quarter and it's shown on 515, and it's consistent with our financial reporting most notably the decrease in any of the pressure during the quarter was largely driven by approximately $2.25 per share attributable to dividend declared in pain during the quarter and thanks for sharing attributable to the issuance of common stock from the top dividend.

Also contributing contributing to the decrease where an eight cents per share decrease related to that and <unk> <unk> and then 52 cents per share decreased attributable to change an unrealized depreciation of Enlightenment. However that decrease substantially related to the realisation of embankment during the quarter and off that and that.

These decreases the niv per share were partially offset by a one dollar and 13 cents per share increase attributable to that relate in that embankment added to that for sure <unk> it should be able to talk with compensation.

I would also like to take a moment to review throw capital proud liquidity, we ended the quarter with approximately $188 million I'm like without that including $108 $2 million in cash $72.6 million, an unrestricted public security.

It does not include approximately $9.4 million and public security subject to certain market provisions as a quarter right.

Our cash balance of $108.2 million and then September 30th.

Marilee of the monetization of various portfolio position throughout 2020 and 2021 to date.

$72.6 million of unrestricted public security, how the as of September 30th represent Hershey, everything Coursera, new like capital partners and scaled back.

September 30th 2021 clothing prices have $31.65 $29.41, an $11.69 respectively.

The $9.4 million, a public security subject to certain lockup revision how does this September 30th represent a restricted public shares in Rover and can do valued at the September 30th 2021 closing prices at $13.59 and $70.08, respectively, a discount for lack of marketability related to the lockup permission.

On October 27th 2021, the company's board of Directors approved an extension of the share repurchase program until the earlier October 31st 2022, or the repurchase of $40 million in aggregate amount of the company is kind of dark.

It's it's inception in August 20th 17, 4 million 823332 shared have been repurchase for approximately $34 million not including the Q4 2019 and your offer under the share repurchase program.

I need to share repurchase program. The company, we may repurchase it's outstanding common stock in the open market provided that it complies with the prohibition under insider trading policies and procedures and the applicable provisions of the investment Company Act of 1940 as a mandate and the Securities Exchange Act in 1934 as minute.

As of September 30th there were 28.781 million 16 chairs the company is common stock outstanding.

In addition to the two dividend of 25 cents per share each declared in the first quarter and the $2.50 per share dividend declared and subsequently paid during the second quarter on August 3rd Zero Capitals Board of directors declared a $2.25 per share dividend to be paid in half dark and half cash on September 30th to shareholders of record as of August 18th.

As a result of the election, the total dividend paid to all the thoughtfulness consisted of approximately $30 million in cash and approximately $2.3 million in shares of common stock through September 30th throw capital has declared and pay the dividend attributable to 2021 and the amount of approximately $131.3 million.

Oh, I think that'll be 21 dividend declared to date are expected to be categorized isn't that long term capital gains for tax purposes. The.

The related realized gains are attributable to the monetization upon fail or accident and the investments in our portfolio.

As Mark mentioned on November 2nd Zero Capitals Board of directors declared a dividend of $2 per share payable on December 30th 2021 does the company is common stockholders would record as at the close of business on November 17th 2021.

The aggregate dividends will be paid in half dark and half cash. However, the portion of cats received by individual shareholders, making a cash election could be greater than 50 per cent.

Shareholders, electing or deemed to have elected to receive the dividend. The Doc will receive 100% of the dividend and she has a stereo capital not including the minimum <unk> professional shares.

As described morpholine state press release, the dividend will be paid in cash or shares the company's common stock at the election of registered shareholders. Although the total amount attached to be distributed to all shareholders will be limited to no more than 50% of the total dividend to be paid in aggregate.

Shareholders at Lightning cash may receive a cash allocation greater than 50% depending on the result of all shareholder elections.

Dividend is being made in accordance with certain applicable treasury regulation and guidance issued by the Iraq, but allow a publicly traded regulated in Baskin company does that is by their distribution requirement from a distribution paid partly in common stock provided certain other requirements are satisfied.

We strongly encourage all shareholders to proactively reach out to the bank broker nominee or <unk> four platform through which they hold their stereo capital shares to make our desired election outcome no.

Only registered shareholders will be directly mailed an election form by our transfer agent American stop transfer.

They're all capital does not process any election, most shareholders are not registered shareholders and must proactively make their election down through the bank broker nominee or platform on which they hold sorrow capital shares.

Each registered shareholder will have the opportunity to elect to receive the dividend in cash or shares of the company on the stock registered shareholders electing to receive the dividend and check with the company is common stock will receive their entire dividend in the form of shares of the company is common stock regardless of the elections made by any other shareholders how're.

However, the total amount of cash to be distributed to all shareholders electing to receive their dividends in cash will be limited to no more than 50 per cent of the total amount to be distributed to all shareholders in the event the amount of cash to be distributed to all shareholders electing to received the dividends in cash would exceed 50% of the total dividend each registered shareholder.

Electing to receive cash will receive eight pro rata portion of the total cash to be distributed based on the number of shares held by each such shareholder.

The <unk> the remainder of the dividend in excess of the shareholders Pro rata share of the total amount of cash to be distributed will be paid in the form of shares of the company is kind of a dark the number of shares of our common stock can be issued to shareholders, receiving all or a portion of the dividend in charge of our common stock will be based on the volume weighted average price per share of our common stock on the NASDAQ.

No market on November 10th 11th and 12th 2021, but $2 to reflect the declared dividend.

The company will call to be mailed an election for them to receive cash or common stock only to registered shareholders pump. We after it to November 17th 2021, another date.

Stirred shareholders are those shareholders, who own their stock directly and not through a bank broker our nominee the completed election farm must be received by throw capital corpse transfer agent American stock transfer prior to five P. M. Eastern time on December 17th 2021.

Registered shareholders the questions regarding the dividend May call American stock transfer at 809 375449.

Registered shareholders, who do not make an election will be deemed to have elected to receive 100 per cent of their dividend and chairs at the complaint sock budget.

But I just started shareholders participating in the company's dividend reinvestment plan will also receive an election appointment.

<unk> feature of the dividend reinvestment plan will be suspended for this distribution and will be reinstated after the distribution has been completed.

Shareholders, who hold their shares through a bank broker a nominee will not receive an election form from the company and should contact their bank broker nominee for instructions on how to make an election.

Shareholders to hold their shares through a bank broker a nominee are encouraged to contact their bank broker our nominee and inform them of the election that should be made on the shareholders behalf.

If a shareholder's bank broker a nominee on the shareholders behalf does not timely return a properly completed completed election for them by the election deadline. The shareholder will have been deemed to have elected to receive 100 per cent of the dividend in the form of shares of our common dark.

Regardless of whether a shareholder received the dividend cash stock or some combination of <unk> dot the entire amount of the dividend will be fully taxable to shareholders and throw capital Corp will report the actual packed characteristic.

Characteristics of each year's dividend annually to shareholders and the IRA on form to 99%.

The date of decorate declaration, an amount and any dividend, including any future dividends are subject to this whole discussion of throw capitals board of directors.

Yeah, I agree in amount of dividends declared and paid my throat capital will be fully taxable stockholders. The tax character of throw capitals dividend cannot be finally determined and held close throw capital tactical year.

Zero capital <unk> will report the actual attacks characteristics at each year's dividend annually to stop over it and the I R. S on form to 99 dead subsequent to your in.

Registered stockholders with questions regarding declared dividend may call American dark transferred at 809 375449.

Shareholders, who hold their service to a bank broker and I'm in the nominee are encouraged to contact their bank broker our nominee for additional details on how their bank broker our nominee will prophecy election on their behalf.

Shareholders can find additional information regarding the dividend and the Investor Relations section of throw capitals website at www Dot <unk> dot com year to date throat capital has declared approximately $7.25 per share to shareholders for total approximate distributions of nearly $188 $9 million as Mark noted.

The board of directors lost that declaring additional dividend depending on the <unk> for the remainder of the year.

That concludes my comment would like to thank you for your interest and support a throw carpet up now I will turn the call over to the operator to start the Q&A session operator.

Thank you if you would like to ask a question you signal bypassing star one on your telephone keypad cause you're using a speaker phone. Please make sure your meat function as turned off by your signal to reach our appointment.

For the interest of time today, we ask that you. Please limit your questions to one on me.

Again that is star one task or question what passed for just a moment to allow everyone can opportunities tech number of questions.

And we'll take our first question traumatic account with flutist ventures.

Mhm.

Good afternoon. Thank you for taking my call the question.

First question is with respect to the.

Good wines in the market richer broken into the specs and the volatility how do you plan to manage Susan knocking two minutes and then the phone will be done.

I'm asking this because a certain percentage of the board for your use associated with this box and then there's a milk and associated with that thank you.

Unfortunately, I don't think I followed the first the second part of your question, but in respect to the first part of your question and any fact that is subject to lock up is either.

Subject to lock up in those lockups or or laid out quite clearly and highly restrictive and of course, we are buying exactly by the lockups that are put forward. Thank you.

Thank you and next we'll move on to Tandy tough one push off one financial services.

[noise]. Thanks for taking my call could you tell me what the exact mass or perceived loss at this moment a V O D y media.

Does that sound wise.

Medium.

It's somewhere slightly north of $11 million.

Thank you.

Okay.

Thank you and that does conclude our question and answer session to me I would like to turn the conference back over to the speakers pretty dismal are closing remarks.

Well [noise].

So thank all of you to take for taking the time for this conference call for taking for.

For supporting Us as shareholders.

As always were available for any other follow up you can contact us directly through our our portal. Thank you all very much I. Appreciate the time you spend with us today.

[laughter].

Thank you and that does conclude today's teleconference. We do appreciate your participation you may not this cat.

[music].

[music].

[music].