The Herzfeld Caribbean Basin Fund, Inc. (NASDAQ: CUBA) (the
“Fund”) today announced the preliminary results of its
non-transferable rights offering (the “Offering”) that expired on
December 13, 2023 (the “Expiration Date”). In the Offering, the
Fund received subscription requests for 14,371,838 shares of common
stock from rights holders.
The Offering’s final subscription price per
share was determined to be $2.35. The subscription price was
established pursuant to the terms of the Offering and based on a
formula equal to 92% of the volume-weighted average closing sales
price of a share of Common Stock on the NASDAQ Capital Market on
the Expiration Date of the Offering and the four preceding trading
days.
The Offering was oversubscribed and the
over-subscription requests exceeded the primary subscription shares
available. Accordingly, a minimum of 7,150,673 shares will be
issued as part of the Primary Subscription as described in the
registration statement related to the Offering. The Fund may, but
is not required to, issue an additional number of shares (up to
200% of the Primary Subscription) to meet over-subscription
requests. The Fund will make a determination of whether to allocate
available shares pro rata among fully exercising stockholders
(pursuant to the formula as described in the prospectus) and to
what extent to honor over-subscription requests upon receipt of
final results of the Offering and receipt of payment for
“delivery-guaranteed” subscriptions, on or about December 18, 2023.
Gross proceeds from the Offering are expected to total
approximately $16.8 million to up to $33.7 million, before
expenses, depending upon the amount of additional over-subscription
shares, if any, issued by the Fund.
The foregoing numbers are estimates only. The
Fund will announce the final results of the Rights Offering in a
press release on or about December 18, 2023.
The final subscription price is lower than the
original estimated subscription price of $2.57 per share.
Accordingly, any excess payments will be returned to subscribing
rights holders as soon as practicable, in accordance with the
prospectus supplement and accompanying prospectus, filed with the
Securities and Exchange Commission on November 22, 2023.
This press release shall not constitute an offer
to sell or constitute a solicitation of an offer to buy.
For additional information on the Fund, please
contact the Fund at 800-TJH-FUND or visit us on the web
at www.herzfeld.com/cuba.
The Fund is a non-diversified, closed-end fund
managed by HERZFELD/CUBA, a division of Thomas J. Herzfeld
Advisors, Inc. (based in Miami Beach). The Fund seeks
long-term capital appreciation. To achieve its objective the
Fund invests in issuers that are likely, in the Advisor’s view, to
benefit from economic, political, structural and technological
developments in countries in the Caribbean Basin, which the Fund
considers to consist of Cuba, Jamaica, Trinidad and Tobago, the
Bahamas, the Dominican Republic, Barbados, Aruba, Haiti, the
Netherlands Antilles, the Commonwealth of Puerto Rico, Mexico,
Honduras, Guatemala, Belize, Costa Rica, Panama, Colombia,
Venezuela, Guyana and the United States (Caribbean Basin
Countries).
Investments in the Fund involve
risks. Investing in companies of Caribbean Basin Countries may
present certain unique risks not associated with domestic
investments, such as currency fluctuation, political and economic
changes and market risks. These factors may result in greater
share price volatility.
Shares of closed-end funds frequently trade at a
discount to their net asset value (NAV). The price of the
Fund’s shares is determined by a number of factors, several of
which are beyond the control of the Fund. Therefore, the Fund
cannot predict whether its shares will trade at, below or above
NAV.
Before investing in the Fund, investors should
carefully consider the investment objective, risks, and charges and
expenses of the Fund. This information can be found in the
Fund’s prospectus on file with the Securities and Exchange
Commission. An investor should carefully read the Fund’s
prospectus before investing.
Participating stockholders will be required to
initially pay for the Shares subscribed for in the offer as well as
any additional shares subscribed for as part of the
over-subscription privilege at the estimated subscription
price.
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. An
investor should carefully consider the Fund’s investment objective,
risks, charges and expenses. Please read the Fund’s disclosure
documents before investing.
NASDAQ Capital Market: CUBACUSIP: 42804T106
Contact Information:
For further information contact:Tom
Morgan305.777.1660
Thomas J. Herzfeld Advisors, Inc.119 Washington Avenue, Suite
504Miami Beach, FL 33139www.herzfeld.com
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