Cornerstone Total Return Fund, Inc. Announces Completion of Rights Offering
July 23 2018 - 9:15AM
Cornerstone Total Return Fund, Inc. (the “Fund”) (NYSE
American:CRF) is pleased to announce the completion of its
one-for-three rights offering which expired on Friday, July 20,
2018 (the “Offering”). The Offering was over-subscribed. Under the
terms of the Offering, record date stockholders were entitled to
purchase one newly issued share of common stock of the Fund for
every three rights held. The subscription price for each newly
issued share was determined to be $13.09 which, under the terms of
the prospectus, was equal to the greater of (i) 107% of net asset
value per share as calculated at the close of trading on the date
of expiration of the Offering and (ii) 90% of the market price per
share at such time.
Based on preliminary results provided by the
Fund's subscription agent, the Fund received requests for
approximately $249 million of its shares.
The subscription price is lower than the
original estimated subscription price of $13.31. Under the
prospectus, any excess payment received from a stockholder will,
unless otherwise indicated on the subscription certificate received
from such stockholder, be applied towards the purchase of
unsubscribed shares. It is anticipated that shares will be issued
on or about Wednesday, July 25, 2018. Stockholders are encouraged
to contact their broker regarding the specifics of their account.
Newly-issued shares will not be entitled to the Fund’s distribution
to stockholders for the month of July 2018.
Cornerstone Total Return Fund, Inc. is a
closed-end, diversified management investment company and is
registered with the U.S. Securities & Exchange Commission
(“SEC”) under the Investment Company Act of 1940, as amended.
Cornerstone Total Return Fund, Inc. is traded on
the NYSE American under the trading symbol “CRF”. The Fund’s
investment adviser is Cornerstone Advisors, Inc., which also serves
as the investment adviser to another closed-end fund, Cornerstone
Strategic Value Fund, Inc. (NYSE American:CLM). For more
information regarding Cornerstone Strategic Value Fund, Inc. or
Cornerstone Total Return Fund, Inc. please visit
www.cornerstonestrategicvaluefund.com, and
www.cornerstonetotalreturnfund.com.
Past performance is no guarantee of future
performance. An investment in the Fund is subject to certain risks,
including market risk. In general, shares of closed-end funds often
trade at a discount from their net asset value and at the time of
sale may be trading on the exchange at a price that is more or less
than the original purchase price or the net asset value. An
investor should carefully consider the Fund’s investment objective,
risks, charges and expenses. Please read the Fund’s disclosure
documents before investing.
In addition to historical information, this
report contains forward-looking statements, which may concern,
among other things, domestic and foreign markets, industry and
economic trends and developments and government regulation and
their potential impact on the Fund’s investment portfolio. These
statements are subject to risks and uncertainties, including the
factors set forth in the Fund’s disclosure documents, filed with
the SEC, and actual trends, developments and regulations in the
future and their impact on the Fund could be materially different
from those projected, anticipated or implied. The Fund has no
obligation to update or revise forward-looking statements.
Contact: (866) 668-6558