Cornerstone Total Return Fund, Inc. Announces Completion Of Rights Offering

Rhea-AI Summary

On June 10, 2022, Cornerstone Total Return Fund (NYSE American: CRF) completed its one-for-three rights offering, which was over-subscribed, receiving requests for approximately $410 million in shares. The subscription price was set at $7.95, lower than the initially estimated price of $9.69. The Fund anticipates issuing shares around June 16, 2022. Newly issued shares will not participate in the Fund's June distribution. As a closed-end, diversified management investment company, CRF is registered with the SEC under the Investment Company Act of 1940.

Positive

• The rights offering was over-subscribed, indicating strong investor demand.
• The subscription price of $7.95 is lower than the earlier estimated price of $9.69, potentially appealing to more investors.

Negative

• Newly issued shares will not be entitled to the Fund's distribution for June 2022, which may lead to short-term dissatisfaction among investors.

NEW YORK, June 13, 2022 (GLOBE NEWSWIRE) -- Cornerstone Total Return Fund, Inc. (the “Fund”) (NYSE American: CRF) (CUSIP: 21924U300) is pleased to announce the completion of its one-for-three rights offering which expired on Friday, June 10, 2022 (the “Offering”). The Offering was over-subscribed. Under the terms of the Offering, record date stockholders were entitled to purchase one newly issued share of common stock of the Fund for every three rights held. The subscription price for each newly issued share was determined to be $7.95 which, under the terms of the prospectus, was equal to the greater of (i) 112% of net asset value per share as calculated at the close of trading on the date of expiration of the Offering and (ii) 65% of the market price per share at such time.

Based on preliminary results provided by the Fund's subscription agent, the Fund received requests for approximately $410 million of its shares. The Fund anticipates issuing over-subscription shares under the additional subscription privilege.  If the aggregate number of shares subscribed for under the additional subscription privilege exceeds the number of excess shares, the excess shares will be allocated as described in the prospectus. 

The subscription price is lower than the original estimated subscription price of $9.69. Under the prospectus, any excess payment received from a stockholder will, unless otherwise indicated on the subscription certificate received from such stockholder, be applied towards the purchase of unsubscribed shares. It is anticipated that shares will be issued on or about Thursday, June 16, 2022. Stockholders are encouraged to contact their broker regarding the specifics of their account. Newly issued shares will not be entitled to the Fund’s distribution to stockholders for the month of June 2022.

Cornerstone Total Return Fund, Inc. is a closed-end, diversified management investment company and is registered with the U.S. Securities & Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended.

Cornerstone Total Return Fund, Inc. is traded on the NYSE American under the trading symbol “CRF”. The Fund’s investment adviser is Cornerstone Advisors, LLC, which also serves as the investment adviser to another closed-end fund, Cornerstone Strategic Value Fund, Inc. (NYSE American: CLM). For more information regarding Cornerstone Strategic Value Fund, Inc. or Cornerstone Total Return Fund, Inc. please visit www.cornerstonestrategicvaluefund.com, and www.cornerstonetotalreturnfund.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 that 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.

In addition to historical information, this report contains forward-looking statements, which may concern, among other things, domestic and foreign markets, industry and economic trends and developments and government regulation and their potential impact on the Fund’s investment portfolio. These statements are subject to risks and uncertainties, including the factors set forth in the Fund’s disclosure documents, filed with the SEC, and actual trends, developments and regulations in the future and their impact on the Fund could be materially different from those projected, anticipated or implied. The Fund has no obligation to update or revise forward-looking statements.

FAQ

What was the result of Cornerstone Total Return Fund's rights offering on June 10, 2022?

The rights offering was over-subscribed, with requests totaling approximately $410 million.

What is the subscription price for shares of CRF after the rights offering?

The subscription price for newly issued shares was set at $7.95.

When will shares from the CRF rights offering be issued?

Shares are anticipated to be issued on or about June 16, 2022.

Will newly issued shares of CRF participate in the June 2022 distribution?

No, newly issued shares will not be entitled to participate in the distribution for June 2022.

What does over-subscribed mean for CRF's rights offering?

Over-subscribed means that the demand for shares exceeded the number of shares available for purchase.