Bancroft Fund Ltd. Announces Rights Offering for Common Shares
March 06 2020 - 4:42PM
Business Wire
The Board of Trustees of Bancroft Fund Ltd. (NYSE American: BCV)
(the “Fund”) has approved a transferable rights offering that will
allow the Fund’s common shareholders to acquire additional common
shares (the “Offering”). The Offering will be made only by means of
a prospectus. This announcement does not constitute an offer to
sell, or a solicitation of an offer to buy, any of the Fund’s
securities.
SUMMARY OF THE TERMS OF THE OFFERING
- Subject to the effectiveness of the Fund’s registration
statement currently on file with the Securities and Exchange
Commission (“SEC”), each shareholder will receive one transferable
right (the “Right”) for each common share held on the record date
(March 19, 2020).
- Three Rights plus $20.50 (the “Subscription Price”) will be
required to purchase one additional common share (the “Primary
Subscription”). The purchase price will be payable in cash.
- Record date shareholders who fully exercise their Primary
Subscription Rights will be eligible for an over-subscription
privilege entitling them to subscribe, subject to certain
limitations and a pro-rata allotment, for any additional common
shares not purchased pursuant to the Primary Subscription. Rights
acquired in the secondary market may not participate in the
over-subscription privilege.
- The Rights are expected to trade “when issued” on the NYSE
American beginning on March 17, 2020, and the Fund’s common shares
are expected to trade “Ex-Rights” on the NYSE American beginning on
March 18, 2020. The Rights are expected to begin trading for normal
settlement on the NYSE American (NYSE American: BCV RT) on or about
March 24, 2020.
- The Offering expires at 5:00 PM Eastern Time on April 21, 2020,
unless extended.
The Offer is subject to the effectiveness of the Fund’s
registration statement currently on file with the SEC and will be
made only by means of a prospectus supplement and accompanying
prospectus. The Fund expects to mail subscription certificates
evidencing the Rights and a copy of the prospectus supplement and
accompanying prospectus for the Offering to record date
shareholders beginning on March 19, 2020. Financial Advisors will
likely send notices shortly thereafter. Inquiries regarding the
Offering should be directed to 800-GABELLI or 914‑921‑5070.
Any common shares issued as a result of the Offering will not be
record date shares for the Fund’s quarterly distribution to be paid
on March 24, 2020, and will not be entitled to receive such
distribution.
The information herein is not complete and is subject to
change. The Fund may not sell these securities until the Fund’s
registration statement currently on file with the SEC is effective.
A final registration statement relating to the securities has not
been filed with the SEC as of the date of this press release. This
document is not an offer to sell these securities and is not
soliciting an offer to buy these securities in any jurisdiction
where the offer or sale is not permitted. This document is not an
offering, which can only be made by a final prospectus. Investors
should consider the Fund’s investment objective, risks, charges and
expenses carefully before investing. The base prospectus contains
this and additional information about the Fund and the prospectus
supplement will contain this and additional information about the
Offering, and should be read carefully before investing. For
further information regarding the Offering, or to obtain a
prospectus supplement and the accompanying prospectus, when
available, please contact the Fund at 800-GABELLI or
914-921-5070.
About Bancroft Fund Ltd.
Bancroft Fund Ltd. is a diversified, closed-end management
investment company with $170 million in total net assets. BCV
invests primarily in convertible securities with the objectives of
providing income and the potential for capital appreciation,
objectives the Fund considers to be relatively equal over the long
term due to the nature of the securities in which it invests. The
Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO
Investors, Inc. (NYSE:GBL).
About GAMCO Investors
GAMCO Investors, Inc., through its subsidiaries, manages private
advisory accounts (GAMCO Asset Management Inc.), mutual funds and
closed-end funds (Gabelli Funds, LLC). As of December 31, 2019,
GAMCO Investors had $36.5 billion in assets under management.
NYSE American – BCV CUSIP – 059695106
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version on businesswire.com: https://www.businesswire.com/news/home/20200306005521/en/
Investor Contact Laurissa Martire at (914) 921-5399 or
lmartire@gabelli.com
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