The Herzfeld Caribbean Basin Fund, Inc. Commences Tender Offer for up to 5% of Outstanding Common Shares

Rhea-AI Summary

Thomas J. Herzfeld Advisors, Inc. announced an Interim Tender Offer by The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) to buy up to 5% of its outstanding shares at 97.5% of NAV. This offer, originally disclosed on December 21, 2020, and updated on January 29, 2021, allows shareholders to sell their shares for cash. The NAV will be determined on March 4, 2021. Shareholders are encouraged to review the Offer to Purchase and related documents available through the SEC and the Fund's website for essential information.

Positive

• Initiating an Interim Tender Offer to purchase up to 5% of outstanding shares may enhance shareholder liquidity.
• Offering shares at 97.5% of NAV may attract investors looking for exits at a near market value.

Negative

• The offer price is below NAV, which could signal underlying valuation issues.
• Potential risks include market volatility and performance impacting the Fund's NAV.

MIAMI BEACH, Fla., Feb. 12, 2021 (GLOBE NEWSWIRE) -- Thomas J. Herzfeld Advisors, Inc., an SEC-registered investment advisor, today announced the commencement of an Interim Tender Offer by The Herzfeld Caribbean Basin Fund, Inc. (Nasdaq: CUBA) (the “Fund”). Under the terms of the Interim Tender Offer the Fund is offering to purchase up to 5% of outstanding shares of the Fund at 97.5% of NAV.

The Fund announced the Interim Tender Officer in a press release on December 21, 2020, as updated in a supplemental press release on January 29, 2021.

The Fund has offered to purchase up to 5% of the currently outstanding common shares of the Fund, par value $0.001 per share (the “Common Shares”) of the Fund at 97.5% of Net Asset Value (“NAV”) per Common Share (determined as of the close of ordinary trading on the NASDAQ Capital Market on March 4, 2021) for cash, upon the terms and subject to the conditions contained in the Offer to Purchase dated February 12, 2021 and the related Letter of Transmittal. Shareholders of the Fund should read the Offer to Purchase, the Letter of Transmittal and related exhibits, as they will contain important information about the Interim Tender Offer. These and other filed documents will be available to investors for free both at the website of the SEC (www.sec.gov) and from the Fund (www.herzfeld.com/CUBA).

Requests for more information, questions and requests for additional copies of the offer materials, please contact AST Fund Solutions, LLC, the Information Agent for the Interim Tender Offer at (866) 406-2285.

About Thomas J. Herzfeld Advisors, Inc.

Thomas J. Herzfeld Advisors, Inc., founded in 1984, is an SEC registered investment advisor, specializing in investment analysis and account management in closed-end funds. The Firm also specializes in investment in the Caribbean Basin. The HERZFELD/CUBA division of Thomas J. Herzfeld Advisors, Inc. serves as the investment advisor to The Herzfeld Caribbean Basin Fund, Inc. a publicly traded closed-end fund (NASDAQ: CUBA).

More information about the advisor can be found at www.herzfeld.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 which is more or less than the original purchase price or the net asset value. There can be no assurance that any Share repurchases will reduce or eliminate the discount of the Fund’s market price to the Fund’s net asset value per share. An investor should carefully consider the Fund’s investment objective, risks, charges and expenses. Please read the Fund’s disclosure documents before investing.

Forward-Looking Statements

This press release, and other statements that Thomas J. Herzfeld Advisors, Inc. (“TJHA”) or the Fund may make, may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the Fund’s or TJHA’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions. TJHA and the Fund caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and TJHA and the Fund assume no duty to and do not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance. With respect to the Fund, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, particularly with respect to Cuba and other Caribbean Basin countries, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Fund or in the Fund’s net asset value; (2) the relative and absolute investment performance of the Fund and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to the Fund or TJHA, as applicable; (8) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or TJHA or the Fund; (9) TJHA’s and the Fund’s ability to attract and retain highly talented professionals; (10) the impact of TJHA electing to provide support to its products from time to time; and (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions. Annual and Semi-Annual Reports and other regulatory filings of the Fund with the SEC are accessible on the SEC’s website at www.sec.gov and on TJHA’s website at www.herzfeld.com/cuba, and may discuss these or other factors that affect the Fund. The information contained on TJHA’s website is not a part of this press release.

FAQ

What is the Interim Tender Offer for CUBA?

The Interim Tender Offer by CUBA allows the purchase of up to 5% of its outstanding shares at 97.5% of NAV.

When is the NAV determined for the Interim Tender Offer?

The NAV for the Interim Tender Offer will be determined on March 4, 2021.

How can shareholders participate in the CUBA Tender Offer?

Shareholders can participate by reviewing the Offer to Purchase and related documents available from the SEC or the Fund's website.

What are the risks associated with the CUBA Tender Offer?

Risks include market volatility and potential changes in the Fund's valuation and performance.

What does it mean to sell shares at 97.5% of NAV?

Selling shares at 97.5% of NAV means shareholders will receive cash slightly below the net asset value of their shares.