Dividend and Income Fund Announces New Record Date for Rights Offering
November 01 2011 - 5:46PM
Marketwired
Dividend and Income Fund, Inc. (NYSE: DNI) (NAV: XDNIX) (the
"Fund") announced today a new record date for its non-transferable
rights offering (the "Rights Offering") of shares of its common
stock (the "Shares").
The new record date for the Rights Offering is currently
expected to be November 14, 2011. The proposed subscription period
is currently anticipated to commence if and when the registration
statement filed with the SEC for the Rights Offering becomes
effective, and expire on December 23, 2011, unless extended by the
Fund (the "Expiration Date"). A definitive announcement of the
Rights Offering's commencement, subscription period, and the record
date will be made through a prospectus. The final terms and dates
of the Rights Offering may be different from those discussed in
this announcement.
The Board of Directors has determined that it would be in the
best interests of the Fund and its stockholders to increase the
assets of the Fund and that the Rights Offering is currently an
effective and efficient way to raise additional assets for the
Fund. The Rights Offering is expected to provide stockholders with
the opportunity to purchase additional Shares at a price below both
market and net asset value ("NAV") without paying any
commissions.
Subject to the registration statement for the Rights Offering
becoming effective under the Securities Act of 1933, as amended,
the Fund will issue non-transferable rights (the "Rights") to its
record date stockholders. Each record date stockholder will receive
one Right for each outstanding Share owned on the record date
rounded up to the nearest number of Rights evenly divisible by
three. The Rights entitle each holder to purchase one new Share for
each three Rights held, plus, in certain circumstances, additional
new Shares pursuant to an over-subscription privilege. Fractional
Shares will not be issued. The new Shares issued in the Rights
Offering also will be listed on the New York Stock Exchange (the
"NYSE") under the symbol "DNI."
The subscription price will be determined on the Expiration Date
based on a formula equal to 95% of the lower of (a) the Fund's NAV
per Share or (b) the market price per Share. For this purpose, the
NAV per Share will be determined as of the Expiration Date, and the
market price per Share will be the average of the volume weighted
average sales price of a Share on the NYSE on the Expiration Date
and the four preceding trading days.
Pursuant to an over-subscription privilege, record date
stockholders who exercise all Rights issued to them will be
entitled, subject to certain limitations and a pro-rata allotment,
to subscribe for additional Shares not subscribed for by other
holders of Rights. In addition, the Fund may, at the discretion of
its Board of Directors, issue additional Shares (up to an amount
equal to 25% of the Shares to be issued assuming all Rights are
exercised) to satisfy over-subscription requests.
The Fund expects to mail subscription forms and a copy of the
prospectus for this Rights Offering to record date stockholders
within the United States shortly following the record date. To
exercise their Rights, stockholders who hold their shares through a
broker, custodian, or trust company, should contact such entity to
forward their instructions to exercise their Rights on their
behalf. Stockholders who do not hold shares through a broker,
custodian, or trust company, should forward their instructions to
exercise their Rights by completing the subscription form and
delivering it to the subscription agent for the Rights Offering,
together with their payment, at one of the locations indicated on
the subscription form or in the prospectus.
The information agent for the Rights Offering is The Altman
Group. For further information regarding the Rights Offering, or to
obtain a prospectus, when available, stockholders should call their
brokers or nominees or The Altman Group toll free at
1-877-732-3616.
The Fund is a diversified, closed end investment company. The
Fund's primary investment objective is to seek high current income.
Capital appreciation is a secondary objective. Bexil Advisers LLC
is the Fund's investment manager. Investors should consider the
Fund's investment objectives, strategies, risks, and expenses
carefully before investing. This information, and other information
concerning the Fund, can be found on file with the U.S. Securities
and Exchange Commission. An investor should carefully read the
registration statement before investing.
Shares of closed end investment companies frequently trade at a
discount from their NAVs. The market price of the 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 their NAV.
A registration statement relating to these securities has been
filed with the U.S. Securities and Exchange Commission but has not
yet become effective. The information in the registration statement
is not complete and may be changed. The Shares may not be sold nor
may offers be accepted prior to the time the registration statement
becomes effective. This announcement is not an offer to sell these
securities and it is not soliciting an offer to buy these
securities in any state or other jurisdiction where the offer or
sale is not permitted.
Safe Harbor Note
This release contains certain "forward looking statements" made
pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These statements involve known and
unknown risks, uncertainties and other factors, many of which are
beyond the control of the Fund, which may cause the Fund's actual
results to be materially different from those expressed or implied
by such statements. The forward looking statements made herein are
only made as of the date of this announcement, and the Fund
undertakes no obligation to publicly update such forward looking
statements to reflect subsequent events or circumstances.
Contact: The Altman Group, Inc. Dividend and Income Fund
Information Line 1-877-732-3616 Thomas O'Malley Chief Financial
Officer 1-212-785-0400, ext. 267 Email Contact
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