PHOENIX, February 2, 2022 /PRNewswire/ – Trinity Capital Inc. (Nasdaq: TRIN) (“Trinity” or the “Company”), a leading specialty lending company that provides loans, including loans and equipment financing, to growth-stage companies backed by technology banks, capital venture capital firms and private equity firms, announced today that it will receive approximately $59.8 million of the aggregate net proceeds from the sale of its interests in Lucid Group, Inc. (Nasdaq: LCID) (“Lucid”) and Matterport Inc. (Nasdaq: MTTR) (“Matterport”).
In January 2022Trinity disposed of 1,867,973 common shares of Lucid and 571,941 common shares of Matterport, representing a combined investment at a cost of approximately $9.0 million. Accordingly, the Company expects to recognize a total net realized gain of approximately $50.8 million in the quarter ended March 31, 2022 from the sale of its interests in Lucid and Matterport. These sales liquidated the Company’s positions in both investments.
“Our focus from inception has been to strategically and creatively maximize shareholder value while executing our investment strategy,” said Steven Brown, Chairman and CEO of Trinity. “Based on our currently outstanding shares, we expect the net gains from the sale of these investments to represent capital gains of approximately $1.86 per share, strengthening our already strong balance sheet. We are confident in our investment strategy and believe we are well positioned to deliver significant value to our shareholders. Given these proceeds, as well as our earnings expectations for 2022, our Board of Directors is evaluating our dividend distribution plan for 2022 and beyond to ensure that our investment returns are properly distributed to our shareholders. and support our long-term growth strategy. We will provide an update on this front in the coming months.”
The net gain realized on the sales of Lucid and Matterport shares is exclusive of any other potential changes in the Company’s investment portfolio and its potential expenses for the quarter ending March 31, 2022.
About Trinity Capital Inc.
Trinity Capital (Nasdaq:TRIN), an internally managed specialty lending company that has elected to be regulated as a business development company under the Investment Companies Act of 1940, as amended, is l a leading provider of debt, including loans and equipment financing, to growth-stage companies, including venture-backed companies and companies with institutional investors. Trinity’s investment objective is to generate current income and, to a lesser extent, capital appreciation through investments consisting primarily of term loans and equipment financings and, to a lesser extent, loans working capital, equity and equity-linked investments. Trinity believes they are one of the only select groups of specialist lenders with the knowledge, experience and track record in growth stage business lending.
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees. future performance or results and involve a number of risks and uncertainties, including the impact of the COVID 19 pandemic on the economy, financial markets, our business, our portfolio companies and our industry. Actual results may differ materially from those in forward-looking statements due to a number of factors, including those described from time to time in filings with the Securities and Exchange Commission (“SEC”). The Company undertakes no obligation to update any forward-looking statements made herein. All forward-looking statements speak only as of the date of this press release. Further information about the risks and other potential factors that could affect the Company’s financial results, including important factors that could cause actual results to differ materially from the plans, estimates or expectations included herein or during the webcast/conference call, are included in the Company’s filings with the SEC, including in the sections “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the company’s most recently filed Annual Report on Form 10-K and subsequent filings with the SEC.
SOURCE Trinity Capital Inc.