Cornerstone Strategic Investment Fund’s 1-for-3 Rights Offering: A Detailed Explanation
On April 10, 2025, Cornerstone Strategic Investment Fund, Inc. (NYSE American: CLM) made an important announcement regarding its upcoming 1-for-3 rights offering. According to the press release, the Fund is planning to issue non-transferable rights to its stockholders, allowing them to purchase additional shares at a subscription price. Below is a more in-depth look into this offering:
Record Date and Eligibility
The Record Date for this offering has been set for April 21, 2025. Stockholders of record on this date will be entitled to participate in the rights offering. Those who hold fractional shares will have their holdings rounded up to the nearest whole number of rights.
Number of Rights and Subscription Price
Each stockholder will receive one right for every share they hold. The Fund is planning to issue a total of 84,252,329 rights, allowing stockholders to purchase an equivalent number of new shares. The subscription price for each new share will be the greater of:
- (i) 112% of the net asset value per share as calculated at the close of trading on the expiration date of the offering;
- (ii) 80% of the market price per share at such time.
Over-Allotment and Oversubscription
In addition to the primary subscription, the Fund may offer a 100% over-allotment to oversubscribing stockholders. Those who fully subscribe in the primary offering will also have the option to oversubscribe for additional shares, to the extent available.
Impact on Individual Investors
If you are a stockholder in Cornerstone Strategic Investment Fund, this rights offering presents an opportunity to increase your investment in the company. By exercising your rights, you can purchase additional shares at a discounted price. The decision to exercise your rights depends on your individual investment strategy and the perceived value of the Fund’s shares.
Impact on the World
The Cornerstone Strategic Investment Fund’s rights offering is a significant event for the investment community. Rights offerings are a way for companies to raise additional capital while providing existing shareholders with the opportunity to increase their investment. This offering may also impact the stock price of the Fund leading up to and following the expiration date.
Conclusion
Cornerstone Strategic Investment Fund’s 1-for-3 rights offering is an exciting development for the company and its stockholders. By understanding the terms of this offering and its potential impact, investors can make informed decisions regarding their investment strategy. For more information, it is recommended that you consult with a financial advisor or the Fund’s investor relations department.
Stay tuned for further updates on this story as more information becomes available.
