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May 8, 2019
GSV Capital Corp. Reports First Quarter 2019 Financial Results
Net Asset Value of $10.75 per Share as of March 31, 2019

SAN FRANCISCO, May 08, 2019 (GLOBE NEWSWIRE) -- GSV Capital Corp. (“GSV Capital” or the “Company”) (Nasdaq:GSVC) today announced financial results for the quarter ended March 31, 2019.  Net assets totaled approximately $212.5 million, or $10.75 per share, at March 31, 2019, as compared to $9.89 per share at December 31, 2018 and $9.99 per share at March 31, 2018.

“As our portfolio companies gain scale, they are increasingly attracting the attention of private investors,” said Mark Klein, President and Chief Executive Officer of GSV Capital. “We expect this trend to continue and to contribute to the growth of our Net Asset Value.”

“Looking ahead, GSV Capital is well positioned to execute against its disciplined growth investment strategy, and we will continue to be opportunistic and disciplined with our current cash and liquid assets,” Klein continued.

Investment Portfolio as of March 31, 2019
At March 31, 2019, GSV Capital held positions in 26 portfolio companies with an aggregate fair value of approximately $213.6 million.  As a result of the Company’s continued strategy to increase the size of its investments in individual portfolio companies, GSV Capital’s investment portfolio has consolidated around its top positions. The Company’s top five portfolio company investments accounted for approximately 57% of the total portfolio at fair value as of March 31, 2019 and for approximately 90% of GSV Capital’s market capitalization at May 7, 2019.

Top Five Investments at March 31, 2019

$ in millions Fair Value   % of Total
Portfolio
Palantir Technologies, Inc. $ 30.1   14.1 %
Coursera, Inc.   28.7   13.4  
Lyft, Inc.   22.1   10.3  
Spotify Technologies S.A.   20.9   9.8  
Course Hero, Inc.   20.6   9.6  
Total (rounded) $ 122.4   57.3 %
           

First Quarter 2019 Portfolio Investment Activity

During the quarter ended March 31, 2019, GSV Capital made the following new investments:

Portfolio Company   Investment   Transaction
Date
  Gross
Payments

(in millions)
Neutron Holdings, Inc. (d/b/a Lime)   Preferred Shares, Series D   1/25/2019       $10.0  

During the quarter ended March 31, 2019, GSV Capital exited investments in the following portfolio companies:

Portfolio Company   Shares Sold   Average
Net Share
Price (1)
  Net Proceeds
(in millions)
  Realized
Gain/(Loss)

(in millions)
Declara, Inc.(2)   10,716,390       $–       $–       $(12.3)  
Spotify Technologies S.A.   85,000       139.66       11.9       8.3  

__________________
(1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s), if applicable.
(2) Exit of Declara includes a 12% Convertible Promissory Note with a principal value of $2.3 million.

Subsequent to quarter-end, through May 7, 2019, GSV Capital exited positions in the following portfolio companies:

Portfolio Company   Shares Sold   Average
Net Share
Price (1)
  Net Proceeds
(in millions)
  Realized
Gain/(Loss)

(in millions)
Spotify Technology S.A.   150,360       $137.51       $20.7       $14.3    
Dropbox, Inc.   95,800       23.72       2.3       0.8    

__________________
(1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s), if applicable.

 

First Quarter 2019 Financial Results

  Quarter Ended
March 31, 2019
Quarter Ended
March 31, 2018
     
  $ in millions per share $ in millions per share
         
Net investment income $ 0.6   $ 0.03   $ 0.0   $ 0.00  
         
Net realized loss on investments   (4.1 )   (0.21 )   (0.8 )   (0.04 )
         
Net change in unrealized appreciation of investments   20.7     1.05     8.1     0.38  
         
Realized loss on partial repurchase of 5.25% Convertible Senior Notes due 2018   -     -     (0.4 )   (0.02 )
         
Provision for taxes on unrealized appreciation of investments   (0.1 )   (0.01 )   -     -  
         
Net increase in net assets resulting from operations – basic(2) $ 17.2   $ 0.86   $ 7.0   $ 0.32  
         
Repurchase of common stock(1)   -     -     (1.2 )   0.03  
         
Increase in net asset value(2) $ 17.2   $ 0.86   $ 5.7   $ 0.35  

__________
(1) During the quarter ended March 31, 2018, the Company repurchased 179,807 shares of GSV Capital common stock for approximately $1.2 million in cash. The use of cash in connection with the repurchases decreased net asset value as of period end; however, the reduction in shares outstanding as of period end resulted in an increase in the net asset value per share.
(2) Total may not sum due to rounding.

Weighted-average common basic shares outstanding were approximately 19.8 million and 21.2 million for the quarters ended March 31, 2019 and 2018, respectively.

GSV Capital’s liquid assets were $64.9 million as of March 31, 2019, consisting of $25.0 million of cash and $39.9 million of public securities not subject to lock-up agreements.

At quarter-end, GSV Capital did not have any borrowings outstanding and $12.0 million of borrowing capacity available under its $12.0 million credit facility.  As of May 7, 2019, GSV Capital had no borrowings outstanding and $12.0 million of borrowing capacity available to it under its credit facility.

Conference Call and Webcast

Management will hold a conference call and webcast for investors at 2:00 p.m. PT (5:00 p.m. ET). The conference call access number for U.S. participants is 334-323-0509, and the conference call access number for participants outside the U.S. is 800-667-5617. The conference ID number for both access numbers is 8575743. Additionally, interested parties can listen to a live webcast of the call from the "Investor Relations" section of GSV Capital's website at http://investors.gsvcap.com/. An archived replay of the webcast will also be available for 12 months following the live presentation.

A replay of the conference call may be accessed until 5:00 p.m. PT (8:00 p.m. ET) on May 15, 2019 by dialing 888-203-1112 (U.S.) or +1 719-457-0820 (International) and using conference ID number 8575743.

About GSV Capital Corp.                                                                                              

GSV Capital Corp. (GSVC) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. The fund seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. GSV Capital is headquartered in San Francisco, CA.www.gsvcap.com

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements,” which relate to future events or our future performance or financial condition. These statements are not guarantees of our future performance, condition or results of operations and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the SEC. GSV Capital Corp. undertakes no duty to update any forward-looking statements made herein, unless required to do so by law.

Contact

GSV Capital Corp.
(650) 235-4769
IR@gsvcap.com

GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)

March 31,
 2019
  December 31,
 2018
ASSETS  
Investments at fair value:  
Non-controlled/non-affiliate investments (cost of $112,265,183 and $105,869,607, respectively) $ 193,484,417     $ 170,067,233  
Non-controlled/affiliate investments (cost of $29,999,703 and $42,333,854, respectively) 2,620,361     5,931,863  
Controlled investments (cost of $22,962,133 and $22,960,942, respectively) 17,466,686     22,816,733  
Total Portfolio Investments 213,571,464     198,815,829  
Investments in U.S. Treasury bills (cost of $99,961,333 and $99,982,067, respectively) 99,980,000     99,994,000  
Total Investments (cost of $265,188,352 and $271,146,470, respectively) 313,551,464     298,809,829  
Cash 24,997,482     28,184,163  
Escrow proceeds receivable 2,177,555     2,494,582  
Interest and dividends receivable 345,884     255,670  
Deferred financing costs 267,541     267,541  
Receivable for unsettled trades 2,017,423      
Prepaid expenses and other assets 699,114     207,769  
Total Assets 344,056,463     330,219,554  
LIABILITIES  
Due to GSV Asset Management(1) 207,710      
Accounts payable and accrued expenses 2,345,086     490,687  
Accrued incentive fees, net of waiver of incentive fees(1)     4,660,472  
Accrued management fees, net of waiver of management fees(1)     415,056  
Accrued interest payable     475,000  
Payable for securities purchased 89,460,654     89,480,103  
Deferred tax liability 979,713     885,566  
4.75% Convertible Senior Notes due March 28, 2023(2) 38,525,528     38,434,511  
Total Liabilities 131,518,691     134,841,395  
       
Net Assets $ 212,537,772     $ 195,378,159  
NET ASSETS  
Common stock, par value $0.01 per share (100,000,000 authorized; 19,762,647 and 19,762,647 issued and outstanding, respectively) $ 197,626     $ 197,626  
Paid-in capital in excess of par 192,322,399     192,322,399  
Accumulated net investment loss (15,608,592 )   (16,228,294 )
Accumulated net realized losses on investments (11,757,058 )   (7,691,365 )
Accumulated net unrealized appreciation of investments 47,383,397     26,777,793  
Net Assets $ 212,537,772     $ 195,378,159  
Net Asset Value Per Share $ 10.75     $ 9.89  

___________________________
(1) This balance references a related-party transaction.
(2) As of March 31, 2019 and December 31, 2018, the 4.75% Convertible Senior Notes due March 28, 2023 had a face value of $40,000,000.


GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended
March 31, 2019
  Three Months Ended
March 31, 2018
INVESTMENT INCOME  
Non-controlled/non-affiliate investments:  
Interest income $ 138,497     $ 1,680  
Non-controlled/affiliate investments:  
Interest income 59,466     234,082  
Controlled investments:  
Interest income 29,287     13,573  
Total Investment Income 227,250     249,335  
OPERATING EXPENSES  
Management fees(1) 848,723     1,323,576  
(Reversal of Incentive fee accrual)/Incentive fees(1) (4,660,472 )   1,471,334  
Costs incurred under Administration Agreement(1) 306,084     424,145  
Directors’ fees 86,250     86,250  
Professional fees 2,061,922     339,898  
Interest expense 604,168     1,140,063  
Income tax expense 3,763     122,270  
Other expenses 357,110     489,270  
Total Operating Expenses (392,452 )   5,396,806  
Management fee waiver(1)     (154,944 )
Incentive fee waiver(1)     (5,000,000 )
Total operating expenses, net of waiver of management and incentive fees (392,452 )   241,862  
Net Investment Income 619,702     7,473  
Realized Gains/(Losses) on Investments:  
Non-controlled/non-affiliated investments 8,269,138     (776,045 )
Non-controlled/affiliate investments (12,334,831 )    
Controlled investments     (680 )
Net Realized Losses on Investments (4,065,693 )   (776,725 )
Realized loss on partial repurchase of 5.25% Convertible Senior Notes due 2018     (397,846 )
Change in Unrealized Appreciation/(Depreciation) of Investments:    
Non-controlled/non-affiliated investments 17,028,343     9,854,664  
Non-controlled/affiliate investments 9,022,648     (7,676,330 )
Controlled investments (5,351,240 )   5,955,060  
Net Change in Unrealized Appreciation/(Depreciation) of Investments 20,699,751     8,133,394  
Provision for taxes on unrealized appreciation of investments (94,147 )    
Net Increase in Net Assets Resulting from Operations $ 17,159,613     $ 6,966,296  
Net Change in Net Assets Resulting from Operations per Common Share:    
Basic $ 0.87     $ 0.33  
Diluted $ 0.75     $ 0.30  
Weighted-Average Common Shares Outstanding  
Basic 19,762,647     21,150,662  
Diluted 23,493,991     26,713,656  

___________________________
(1) This balance references a related-party transaction.


GSV CAPITAL CORP. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (UNAUDITED)

  Three Months Ended March 31,
    2019   2018
Per Basic Share Data        
Net asset value at beginning of the year   $ 9.89     $ 9.64  
Net investment income(1)   0.03      
Net realized loss on investments(1)   (0.21 )   (0.04 )
Realized loss on partial repurchase of 5.25% Convertible Senior Notes due 2018(1)       (0.02 )
Net change in unrealized appreciation/(depreciation) of investments(1)   1.05     0.38  
Provision for taxes on unrealized appreciation of investments(1)   (0.01 )    
Repurchase of common stock(1)       0.03  
Net asset value at end of period   $ 10.75     $ 9.99  
Per share market value at end of period   $ 7.58     $ 7.54  
Total return based on market value(2)   45.21 %   38.35 %
Total return based on net asset value(2)   8.70 %   3.62 %
Shares outstanding at end of period   19,762,647     21,066,538  
Ratios/Supplemental Data:        
Net assets at end of period   $ 212,537,772     $ 210,487,734  
Average net assets   $ 194,819,568     $ 204,070,345  
Ratio of gross operating expenses to average net assets(3)   4.15 %   10.14 %
Ratio of incentive fee waiver to average net assets   %   (2.45 )%
Ratio of management fee waiver to average net assets   %   (0.31 )%
Ratio of income tax provision to average net assets   0.05 %   %
Ratio of net operating expenses to average net assets(3)   4.20 %   7.38 %
Ratio of net investment loss to average net assets(3)   1.29 %   0.02 %
Portfolio Turnover Ratio   4.85 %   0.11 %

___________________________
(1) Based on weighted-average number of shares outstanding for the relevant period.
(2) Total return based on market value is based on the change in market price per share between the opening and ending market values per share in the year. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share.
(3) Financial Highlights for periods of less than one year are annualized and the ratios of operating expenses to average net assets and net investment loss to average net assets are adjusted accordingly. Non-recurring expenses, including the $5.0 million accrued incentive fee forfeiture pursuant to the Waiver Agreement, are not annualized. For the three months ended March 31, 2019, the Company excluded $2,387,356 of non-recurring expenses and did not annualize the income tax provision.  For the three months ended March 31, 2018 the Company excluded $352,667 of non-recurring expenses and did not annualize the incentive fee waiver. Because the ratios are calculated for the Company’s common stock taken as a whole, an individual investor’s ratios may vary from these ratios

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Source: GSV Capital Corp