The Herzfeld Caribbean Basin Fund, Inc. To Conduct a Tender Offer for up to 5% of Outstanding Common Shares
October 03 2022 - 12:04PM
Thomas J. Herzfeld Advisors, Inc., an SEC-registered investment
advisor, today announced its intention to commence a Tender Offer
by The Herzfeld Caribbean Basin Fund, Inc. (Nasdaq: CUBA) (the
“Fund”) on October 12, 2022, in accordance with the Fund’s
three-year plan to address the Fund’s trading price discount to its
net asset value (“NAV”) per share that was previously announced on
May 31, 2019, and subsequently extended for an additional one-year
period on May 12, 2022 (the “Plan”).
Under the Self-Tender Policy component of the Plan, the Fund has
undertaken to commence a tender offer by October 31st of up to 5%
of outstanding shares of the Fund at 97.5% of NAV if the average
discount was greater than 10% for the fiscal year just ended.
The formal offer and detailed terms of the tender will be
announced in the coming days.
Tender Offer Statement
The above statements are not intended to
constitute an offer to participate in any tender offer.
Shareholders will be notified of the terms of the tender offer in
accordance with the requirements of the Securities Exchange Act of
1934, as amended, and the Investment Company Act of 1940, as
amended, either by publication or mailing or both. The tender offer
will be made by an offer to purchase, a related letter of
transmittal, and other documents to be filed with the SEC.
Shareholders of the Fund should read the offer to purchase and
tender offer statement and related exhibits when those documents
are filed and become available, as they will contain important
information about the tender offer. These and other filed documents
will be available to investors for free both at the website of the
SEC (www.sec.gov) and from the Fund (www.herzfeld.com/cuba).
About Thomas J. Herzfeld Advisors, Inc.
Thomas J. Herzfeld Advisors, Inc., founded in
1984, is an SEC registered investment advisor, specializing in
investment analysis and account management in closed-end funds. The
Firm also specializes in investment in the Caribbean Basin. The
HERZFELD/CUBA division of Thomas J. Herzfeld Advisors, Inc. serves
as the investment advisor to The Herzfeld Caribbean Basin Fund,
Inc. a publicly traded closed-end fund (NASDAQ: CUBA).
More information about the advisor can be found
at www.herzfeld.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 which is more or
less than the original purchase price or the net asset value. There
can be no assurance that any Share repurchases will reduce or
eliminate the discount of the Fund’s market price to the Fund’s net
asset value per share. An investor should carefully consider the
Fund’s investment objective, risks, charges and expenses. Please
read the Fund’s disclosure documents before investing.
Forward-Looking Statements
This press release, and other statements that
Thomas J. Herzfeld Advisors, Inc. (“TJHA”) or the Fund may make,
may contain forward looking statements within the meaning of the
Private Securities Litigation Reform Act, with respect to the
Fund’s or TJHA’s future financial or business performance,
strategies or expectations. Forward-looking statements are
typically identified by words or phrases such as “trend,”
“potential,” “opportunity,” “pipeline,” “believe,” “comfortable,”
“expect,” “anticipate,” “current,” “intention,” “estimate,”
“position,” “assume,” “outlook,” “continue,” “remain,” “maintain,”
“sustain,” “seek,” “achieve,” and similar expressions, or future or
conditional verbs such as “will,” “would,” “should,” “could,” “may”
or similar expressions. TJHA and the Fund caution that
forward-looking statements are subject to numerous assumptions,
risks and uncertainties, which change over time. Forward-looking
statements speak only as of the date they are made, and TJHA and
the Fund assume no duty to and do not undertake to update
forward-looking statements. Actual results could differ materially
from those anticipated in forward-looking statements and future
results could differ materially from historical performance. With
respect to the Fund, the following factors, among others, could
cause actual events to differ materially from forward-looking
statements or historical performance: (1) changes and volatility in
political, economic or industry conditions, particularly with
respect to Cuba and other Caribbean Basin countries, the interest
rate environment, foreign exchange rates or financial and capital
markets, which could result in changes in demand for the Fund or in
the Fund’s net asset value; (2) the relative and absolute
investment performance of the Fund and its investments; (3) the
impact of increased competition; (4) the unfavorable resolution of
any legal proceedings; (5) the extent and timing of any
distributions or share repurchases; (6) the impact, extent and
timing of technological changes; (7) the impact of legislative and
regulatory actions and reforms, including the Dodd-Frank Wall
Street Reform and Consumer Protection Act, and regulatory,
supervisory or enforcement actions of government agencies relating
to the Fund or TJHA, as applicable; (8) terrorist activities,
international hostilities and natural disasters, which may
adversely affect the general economy, domestic and local financial
and capital markets, specific industries or TJHA or the Fund; (9)
TJHA’s and the Fund’s ability to attract and retain highly talented
professionals; (10) the impact of TJHA electing to provide support
to its products from time to time; and (11) the impact of problems
at other financial institutions or the failure or negative
performance of products at other financial institutions. Annual and
Semi-Annual Reports and other regulatory filings of the Fund with
the SEC are accessible on the SEC’s website at www.sec.gov and on
TJHA’s website at www.herzfeld.com/cuba, and may discuss these or
other factors that affect the Fund. The information contained on
TJHA’s website is not a part of this press release.
Contact:Tom MorganChief Compliance OfficerThomas J. Herzfeld
Advisors, Inc.1-305-777-1660
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