HOUSTON, TX – September 16, 2008 – Equus Total Return, Inc. (NYSE: EQS) (the “Fund”) has repurchased an aggregate of 423,960 shares of its common stock, representing 4.9% of its outstanding shares, from unaffiliated third parties in a private transaction. In compliance with federal law, the sale was effected at the shares’ market price computed as the 5-day volume-weighted average closing price prior to the date of sale, which was September 11, 2008. The shares were repurchased at a discount to the Fund’s net asset value and subsequently retired. This increased the net asset value per share (as adjusted for cash and share dividends to be paid in the third quarter) from approximately $11.78 to $12.02.
In the Fund’s quarterly report for the period ended June 30, 2008, in its last annual report mailed to shareholders on or about April 30, 2008, and in other public documents, the Fund informed shareholders of its intention to possibly repurchase a portion of its stock. The disclosures stated that the Board of Directors has determined that it would be in the best interest of the stockholders for the Fund to be authorized to attempt to reduce or eliminate the market value discount from net asset value. Accordingly, from time to time the Fund may, but is not required to, repurchase its shares in an attempt to reduce or eliminate the discount or to increase the net asset value of the remaining shares.
Discussing the present share repurchase, Kenneth I. Denos, the Fund’s CEO and President, commented that: "With the Fund’s shares currently trading at a significant discount from their net asset value, we viewed the share repurchase as a prudent use of the Fund’s resources."
The Fund’s share repurchase was not made in a manner or on a basis which discriminates unfairly against any Fund shareholders.
Equus Total Return, Inc. is a business development company that trades as a closed-end fund on the New York Stock Exchange, under the symbol "EQS". Additional information on Equus Total Return, Inc. may be obtained from the Equus website at www.equuscap.com.
This press release may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Fund’s current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the risks and uncertainties described in the Fund’s filings with the Securities and Exchange Commission. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. The Fund undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by the Fund or any other person that the events or circumstances described in such statements are material.
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