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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

SAFEGUARD SCIENTIFICS UPDATE – BRIGHT HEALTH GROUP

June 28, 2021 GMT

RADNOR, Pa., June 28, 2021 (GLOBE NEWSWIRE) --   Safeguard Scientifics, Inc. (NYSE:SFE) (“Safeguard” or the “Company”) today announced an update to the fair value of its ownership interest in Bright Health Group (“Bright Health”), a leading national high-growth integrated healthcare platform.   On June 23, 2021, Bright Health completed an initial public offering (“IPO”), which included the conversion of its preferred stock into shares of common stock in conjunction with a stock split.   With the completion of the IPO, Safeguard’s stake in Bright Health consists of approximately 1.3 million shares of common stock, subject to the final determination by Bright Health’s transfer agent. Based on the IPO closing price of $18.00 per share, Safeguard’s position in Bright Health is valued at approximately $23.4 million, as compared to $15.3 million on March 31, 2021. Registration filings related to the Bright Health offering, including a description of the six-month lock-up period restricting the trading of these shares, can be reviewed in Bright Health’s SEC filings at www.sec.gov.  

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The Bright Health common shares represent an equity security with a readily determinable fair value and will be classified as Trading securities, which will subsequently be measured at fair value with unrealized gains (losses) being recorded as a component of Other income (loss), net in upcoming quarterly financial statement filings.

About Safeguard Scientifics
Historically, Safeguard Scientifics has provided capital and relevant expertise to fuel the growth of technology-driven businesses. Safeguard has a distinguished track record of fostering innovation and building market leaders that spans more than six decades. Safeguard is currently pursuing a focused strategy to value-maximize and monetize its ownership interests over a multi-year time frame to drive shareholder value. For more information, please visit www.safeguard.com.

Forward-looking Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.Our forward-looking statements are subject to risks and uncertainties. Forward-looking statements include, but are not limited to, statements regardingSafeguard’s ability to maximize the value of monetization opportunities of its ownership interests and drive total shareholder returns. Safeguard’sinitiatives taken or contemplated to enhance and unlock value for all of itsshareholders, Safeguard’s efforts to execute on and implement its strategy to streamline its organizational structure, reduce its operating costs, pursue monetization opportunities forownership interestsand maximize thereturn of value toits shareholders, Safeguard’s ability to create, unlock, enhance and maximize shareholder value, theeffect ofSafeguard’s management succession plan on driving increased organizational effectiveness and efficiencies, the ability of the management team to execute Safeguard’s strategy, the availability of, the timing of, and the proceeds that may ultimately be derived from the monetization ofownership interests, Safeguard’s projections regarding the reduction in its ongoing operating expenses, Safeguard’s projections regarding annualized operating expenses and expected severance expenses, monetization opportunities forownershipinterests, and the amount of net proceeds from the monetization ofownershipinterests thatwill enable the return of valueto Safeguard shareholders after satisfying working capital needs and the timing of suchreturn of value.Such forward-looking statements are not guarantees of future operational or financial performance and are based on current expectations that involve a number of uncertainties, risks and assumptions that are difficult to predict.Therefore, actual outcomes and/or results may differ materially from those expressed or implied by such forward-looking statements.The risks and uncertainties that could cause actual results to differ materially include, among others, our ability to make good decisions about the monetization of ourownership interestsfor maximum value or at all andthe return of valueto our shareholders, our ability to successfully execute on our strategy to streamline our organizational structure and align our cost structure to increase shareholder value, whether our strategy will better position us to focus our resources on the highest-return opportunities and deliver enhanced shareholder value, the ongoing support of our existingownership interests, the fact that ourcompaniesmay vary from period to period, challenges to achieving liquidity from ourownership interests, fluctuations in the market prices ofourpublicly traded holdings, if any, competition, our inability to obtain maximum value for ourownership interests, our ability to attract and retain qualified employees, market valuations in sectors in which ourownership interestsoperate, our inability to control ourownership interests, our need to manage our assets to avoid registration under the Investment Company Act of 1940, risks, disruption, costs and uncertainty caused by or related to the actions of activist shareholders, including that if individuals are elected to our Board with a specific agenda, it may adversely affect our ability to effectively implement our business strategy and create value for our shareholders and perceived uncertainties as to our future direction as a result of potential changes to the composition of our Board may lead to the perception of a change in the direction of our business, instability or a lack of continuity that may adversely affect our business, and risks associated with ourownership interests, including the fact that most of ourownership interestshave a limited operating history and a history of operating losses, face intense competition and may never be profitable, the effect of economic conditions in the business sectors in which Safeguard’scompaniesoperate, and other uncertainties described in our filings with the Securities and Exchange Commission.Many of these factors are beyond the Company’s ability to predict or control.As a result of these and other factors, the Company’s past operational and financial performance should not be relied on as an indication of future performance.The Company does not assume any obligation to update any forward-looking statements or other information contained in this press release.

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SAFEGUARD CONTACT: Mark Herndon Chief Financial Officer (610) 975-4913 mherndon@safeguard.com