Central Securities Corporation Announces Reinvestment Price of Shares for Distribution Payable December 22, 2022

Rhea-AI Summary

Central Securities Corporation (NYSE American: CET) announced a distribution of $2.25 per share payable on December 22, 2022. The issuance price for the common stock will be $35.36 per share, based on the average daily volume weighted average price (VWAP) over the last three trading days concluding December 1, 2022. The distribution was previously disclosed on November 3, 2022, with a record date of November 14, 2022.

Of the total, $0.50 is taxable as ordinary income and $1.75 as long-term capital gain.

Positive

• Distribution of $2.25 per share announced and being paid out to shareholders.
• Tax treatment outlined, indicating transparency for shareholders.

Negative

• Issuance price of $35.36 significantly above the distribution value, potentially indicating a premium that may affect investor sentiment.

NEW YORK--(BUSINESS WIRE)-- Central Securities Corporation (NYSE American: CET) announced today that the price at which Common Stock will be issued in payment of the $2.25 per share distribution payable on December 22, 2022 is $35.36 per share. This price is the arithmetic average of the daily volume weighted average price (“VWAP”) of the Corporation’s Common Stock for each of the last three trading days ending on and including December 1, 2022, rounded to two decimal places. The distribution was previously announced on November 3, 2022 and is payable to shareholders of record on November 14, 2022.

Of the $2.25 per share to be paid, $0.50 is expected to be taxable as ordinary income and $1.75 is expected to be taxable as long-term capital gain. Tax treatment will be the same whether the distribution is received in stock or cash. The final tax breakdown of all amounts paid during 2022 will be available after year end.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221201006001/en/

Central Securities Corporation

Marlene A. Krumholz, Secretary

(212) 698-2020

Source: Central Securities Corporation

FAQ

What is the distribution amount announced by Central Securities Corporation (CET)?

Central Securities Corporation announced a distribution of $2.25 per share.

When is the distribution payable for CET stock?

The distribution is payable on December 22, 2022.

What is the issuance price for CET's common stock in relation to the distribution?

The issuance price is set at $35.36 per share.

When was the record date for the distribution payment for CET?

The record date was November 14, 2022.

What is the tax breakdown for the $2.25 distribution for CET shareholders?

Of the $2.25 per share, $0.50 is expected to be taxable as ordinary income and $1.75 as long-term capital gain.