Central Securities Corporation Announces Reinvestment Price of Shares for Distribution Payable December 22, 2021

Rhea-AI Summary

Central Securities Corporation (NYSE American: CET) announced the issue price for its upcoming $3.55 per share distribution, payable on December 22, 2021. The issue price is set at $40.05 per share, calculated based on the volume weighted average price (VWAP) over the last three trading days up to December 2, 2021. This distribution was initially communicated on November 3, 2021, and will be payable to shareholders recorded by November 15, 2021.

Tax implications include $0.87 as taxable ordinary income and $2.68 as long-term capital gain.

Positive

• Distribution of $3.55 per share signifies ongoing returns to shareholders.
• Issue price of $40.05 reflects favorable VWAP, indicating investor confidence.

Negative

• Taxable ordinary income of $0.87 may affect shareholders' net returns.

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 $3.55 per share distribution payable on December 22, 2021, is $40.05 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 2, 2021, rounded to two decimal places. The distribution was previously announced on November 3, 2021, and is payable to shareholders of record on November 15, 2021.

Of the $3.55 per share to be paid, $0.87 is expected to be taxable as ordinary income (of which $0.064 per share is short-term capital gain) and $2.68 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 2021 will be available after year end.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211202005995/en/

Central Securities Corporation

Marlene A. Krumholz, Secretary

(212) 698-2020

Source: Central Securities Corporation

FAQ

What is the issue price for CET's distribution on December 22, 2021?

The issue price for the $3.55 per share distribution is $40.05.

When will CET shareholders receive the $3.55 per share distribution?

Shareholders will receive the distribution on December 22, 2021.

What are the tax implications of CET's distribution?

$0.87 is taxable as ordinary income, and $2.68 is taxable as long-term capital gain.

When was the CET distribution initially announced?

The distribution was initially announced on November 3, 2021.

Who is eligible for CET's distribution?

Shareholders of record as of November 15, 2021, are eligible for the distribution.