02/08/2021

Equus Shareholders Grant Authorization to Withdraw BDC Election and Increase Licensed Shares

HOUSTON, Jan. 20, 2021 (World NEWSWIRE) — Equus Whole Return, Inc. (NYSE: EQS) (“Equus” or the “Company”) these days announced that the greater part of its shareholders have licensed the Company’s Board of Directors (hereinafter, the “Board”) to: (i) result in the Company’s withdrawal of its election to be classifed as a organization advancement enterprise (“BDC”) underneath the Financial commitment Company Act of 1940 (the “1940 Act”) as component of a opportunity strategic transformation of Equus into an operating enterprise and (ii) enhance the Company’s approved shares of common and most well-liked stock from 50 million to 100 million shares, and from 5 million to 10 million shares, respectively.

Above the past quite a few many years, the Enterprise has examined a selection of possible transactions in a range of sectors , which includes vitality, organic resources, containers and packaging, real estate, media, engineering, and telecommunications. These opinions have included thing to consider of probable strategic transactions to improve value to shareholders as an operating corporation not subject matter to the 1940 Act. The authorization granted by the Company’s stockholders makes it possible for the Board to: (i) withdraw the Company’s BDC authorization on or prior to August 31, 2021 as element of a probable strategic transformation of Equus into an functioning company and, (ii) maximize the selection of licensed shares of popular and most popular stock to empower the Business to have better adaptability to contemplate a broader variety of opportunity acquisition targets and affiliated funding selections. Despite the fact that Equus has been approved to withdraw and terminate the Company’s BDC election under the 1940 Act, it will not submit any this kind of withdrawal unless of course and till Equus has entered into a definitive agreement to purchase an working business.

Pitfalls and Uncertainties

The outbreak of Covid-19 in the United States in February 2020 and its subsequent resurgence in 2021 has introduced a quantity of worries to reaching the Company’s operational and strategic goals. Governing administration vacation bans, border closures and directives on social distancing and shelter-in-put mandates have produced it tough to conduct in-particular person owing diligence examinations, negotiations, and other features which are endemic to the interpersonal nature of personal fairness investing in addition to the mergers and acquisitions system. Must these disruptions and restrictions on vacation proceed during 2021 as a end result of Covid-19, the Business are not able to, therefore, give assurance that its endeavors to go after a transformative transaction will not be materially adversely afflicted thereby.

The transformation of Equus into an running company is subject matter to different ailments, pitfalls, and uncertainties. This sort of hazards really should be regarded as in addition to the items determined as “Risk Factors” in the Company’s most current Once-a-year Report on Kind 10-K submitted with the Securities and Trade Commission (the “SEC”) on March 30, 2020.&#13

Likely Strengths

An working business construction, in lieu of a shut-finish fund composition, could be useful to Equus and its shareholders in many techniques, like: (i) a increased amount of growth options as a result of merger with and acquisition of other operating providers, (ii) a valuation of Equus primarily based on regular running standards this sort of as earnings, profits, and gross earnings, alternatively of web asset benefit, (iii) lower proportional compliance prices due to Equus not becoming regulated beneath the 1940 Act, and (iv) better overall flexibility to problem frequent and most popular fairness, as well as other types of securities as thought for acquisitions and advancement of the Organization.

Even if the Company makes use of its shares to receive financial investment property and remains a BDC, the Enterprise thinks that it could acquire price tag efficiencies in controlling a better amount of property these types of that Corporation fees as a percentage of property less than management would reduce. In modern several years, Company administration has created major efforts to decrease over-all expenses and fees relative to its internet asset benefit together with, for illustration, reductions in staff members and in the quantity of associates of the Company’s Board.

Forward-Wanting Statements

This press launch incorporates sure forward-looking statements relating to probable foreseeable future situation. These ahead-on the lookout statements are based mostly on the Company’s present anticipations and assumptions and are subject to various challenges and uncertainties that could result in actual results to vary materially from people contemplated in these types of ahead-hunting statements including, in certain, the efficiency of the Organization, including our ability to attain our envisioned monetary and organization targets, our ability to execute our reorganization underneath the Program and total the transactions contemplated thus, the other dangers and uncertainties explained herein, as very well as all those contained in the Company’s filings with the SEC. Precise success, events, and general performance may possibly differ. Readers are cautioned not to put undue reliance on these ahead-on the lookout statements, which discuss only as to the day hereof. The Firm undertakes no obligation to release publicly any revisions to these ahead-on the lookout statements that may perhaps be built to replicate events or conditions soon after the day hereof or to replicate the event of unanticipated situations. The inclusion of any assertion in this launch does not represent an admission by the Firm or any other particular person that the activities or situation explained in these kinds of statements are materials.&#13

Contacts:

Patricia Baronowski
Pristine Advisers, LLC
(631) 756-2486