- Cornerstone Total Return Fund (CRF) announces a 1-for-3 rights offering for existing shareholders.
- The offering allows purchase of shares at 112% of NAV or 80% of market price.
- Subscription period ends on May 16, 2025, at 5:00 p.m. EDT.
The Cornerstone Total Return Fund (CRF) has unveiled a new 1-for-3 rights offering, aimed at expanding its capital base by allowing existing shareholders to purchase additional shares. Shareholders will receive one non-transferable right for each share held as of the record date set for April 21, 2025. These rights enable the purchase of new shares at a subscription price that will be the greater of 112% of the net asset value (NAV) or 80% of the market price at the offering's expiration.
This rights offering entails the issue of 39,475,678 new shares and includes a 100% over-allotment option for oversubscribing stockholders. This over-allotment provision allows shareholders who fully participate in the primary subscription to apply for additional shares if available. The subscription window is open until May 16, 2025, at 5:00 p.m. EDT.
It's important to note that the new shares issued will not qualify for the May 2025 distribution. Additionally, investors should be aware of potential dilutive effects on outstanding shares and the necessity to consider personal investment strategies and potential market conditions. For those unable to participate, selling the rights is not an option given their non-transferable nature.
