Gabelli Multimedia Trust Announces Rights Offering for Shares of Common Stock Record Date and Summary of Terms

Rhea-AI Summary

The Gabelli Multimedia Trust Inc. (NYSE:GGT) has authorized a transferable rights offering for current shareholders. Each shareholder will receive one right per share held on the record date of July 13, 2021. To acquire one additional share, four rights plus $9.50 is required. The offering period begins with rights trading on July 9, 2021, and ends at 5:00 PM ET on August 25, 2021. Notably, shares issued through this offering will not be eligible for the quarterly distribution planned for September 2021. The offering is conducted under an effective shelf registration statement.

Positive

• Shareholders can acquire additional shares at a favorable price of $9.50 each.
• Over-subscription privilege allows eligible shareholders to purchase additional shares.

Negative

• Shares from the offering will not qualify for the September 2021 quarterly distribution, potentially disappointing shareholders expecting regular income.
• The rights offering may lead to share dilution for existing shareholders.

The Board of Directors of The Gabelli Multimedia Trust Inc. (NYSE:GGT) (the “Fund”) has approved a transferable rights offering which would allow the Fund’s record date common shareholders to acquire additional shares of common stock (the “Offering”). The Offering will be made only by means of a prospectus, and this announcement does not constitute an offer to sell, or a solicitation of an offer to buy, any of the Fund’s securities.

SUMMARY OF THE TERMS OF THE OFFERING

• Each shareholder will receive one transferable right (the “Right”) for each share of common stock held on the record date (July 13, 2021).

• Four Rights plus $9.50 (the “Subscription Price”) will be required to purchase one additional share of common stock (the “Primary Subscription”). The purchase price will be payable in cash.

• Record date shareholders who fully exercise their Primary Subscription Rights will be eligible for an over-subscription privilege entitling these shareholders to subscribe, subject to certain limitations and a pro-rata allotment, for any additional shares of common stock not purchased pursuant to the Primary Subscription. Rights acquired in the secondary market may not participate in the over-subscription privilege.

• The Rights are expected to trade “when issued” on the New York Stock Exchange beginning on July 9, 2021, and the Fund’s shares of common stock are expected to trade “Ex-Rights” on the New York Stock Exchange beginning on July 12, 2021. The Rights are expected to begin trading for normal settlement on the New York Stock Exchange (NYSE:GGT RT) on or about July 16, 2021.

• The Offering expires at 5:00 PM Eastern Time on August 25, 2021, unless extended.

The Fund expects to mail subscription certificates evidencing the Rights and a copy of the prospectus for the Offering to record date shareholders beginning on July 15, 2021. Financial Advisors will likely send notices to you shortly thereafter. Inquiries regarding the Offering should be directed to the Fund at 800-GABELLI or 914-921-5070.

The Offering is made pursuant to the Fund’s effective shelf registration statement on file with the Securities and Exchange Commission.

Any shares of common stock issued as a result of the Offering will not be record date shares for the Fund’s quarterly distribution projected to be paid in September 2021 and will not be entitled to receive such distribution.

The information herein is not complete and is subject to change. This document is not an offer to sell these securities and is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted. This document is not an offering, which can only be made by a final prospectus. Investors should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. The base prospectus contains this and additional information about the Fund and the prospectus supplement will contain this and additional information about the Offering, and should be read carefully before investing. For further information regarding the Offering, or to obtain a prospectus supplement and the accompanying prospectus, when available, please contact the Fund at 800-GABELLI or 914-921-5070.

The Gabelli Multimedia Trust Inc. is a non-diversified, closed-end management investment company with $335 million in total net assets whose primary investment objective is long-term growth of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL).

NYSE – GGT

CUSIP – 36239Q109

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FAQ

What is the Gabelli Multimedia Trust's rights offering for GGT shareholders?

The rights offering allows shareholders to acquire additional shares at a price of $9.50 for every four rights held.

What are the important dates for the GGT rights offering?

The rights trading begins on July 9, 2021, and the offering expires on August 25, 2021.

Will shares obtained from the rights offering be eligible for the September 2021 distribution?

No, shares obtained through this offering will not be eligible for the quarterly distribution planned for September 2021.

How does the over-subscription privilege work in the GGT offering?

Shareholders who fully exercise their primary subscription rights can subscribe to additional shares that are not purchased by others.

What is the subscription price for additional shares in the GGT offering?

The subscription price for one additional share in the GGT offering is $9.50.