Gabelli Multimedia Trust Board Approves at the Market Common Stock Offerings With Prices Trading Above NAV
The Gabelli Multimedia Trust (NYSE:GGT) has announced that its Board of Directors has authorized at-the-market (ATM) offerings of common stock at prices above the net asset value (NAV). This strategic move would be accretive to all shareholders as shares would be issued at prices exceeding the current NAV per share.
The Fund's Board continues to evaluate its capital structure, including opportunities for shareholders to subscribe for additional common stock. GGT has previously completed six rights offerings. The timing and volume of sales under the ATM offering will depend on various factors determined by the Fund.
Proceeds from the ATM offering will be invested according to the Fund's investment objectives as suitable opportunities arise. The offering will be conducted through a shelf registration statement with the SEC, requiring a prospectus supplement and accompanying prospectus, which are yet to be filed.
Il Gabelli Multimedia Trust (NYSE:GGT) ha annunciato che il suo Consiglio di Amministrazione ha autorizzato offerte at-the-market (ATM) di azioni ordinarie a prezzi superiori al valore netto degli attivi (NAV). Questa mossa strategica sarebbe accretiva per tutti gli azionisti, poiché le azioni verrebbero emesse a prezzi superiori all'attuale NAV per azione.
Il Consiglio del Fondo continua a valutare la sua struttura di capitale, comprese le opportunità per gli azionisti di sottoscrivere azioni ordinarie aggiuntive. GGT ha precedentemente completato sei offerte di diritti. Il momento e il volume delle vendite nell'ambito dell'offerta ATM dipenderanno da vari fattori determinati dal Fondo.
Il ricavato dall'offerta ATM sarà investito in base agli obiettivi d'investimento del Fondo, man mano che si presentano opportunità adeguate. L'offerta sarà condotta attraverso una dichiarazione di registrazione di shelf presso la SEC, richiedendo un supplemento di prospetto e un prospetto accompagnatorio, che devono ancora essere depositati.
El Gabelli Multimedia Trust (NYSE:GGT) ha anunciado que su Junta Directiva ha autorizado ofertas at-the-market (ATM) de acciones ordinarias a precios superiores al valor neto de los activos (NAV). Este movimiento estratégico sería acreativo para todos los accionistas, ya que las acciones se emitirían a precios que superan el NAV actual por acción.
La Junta del Fondo continúa evaluando su estructura de capital, incluidas las oportunidades para que los accionistas suscriban acciones ordinarias adicionales. GGT ha completado previamente seis ofertas de derechos. El momento y el volumen de las ventas bajo la oferta ATM dependerán de varios factores determinados por el Fondo.
Los ingresos de la oferta ATM se invertirán de acuerdo con los objetivos de inversión del Fondo a medida que surjan oportunidades adecuadas. La oferta se llevará a cabo a través de una declaración de registro de shelf con la SEC, requiriendo un suplemento de prospecto y un prospecto adjunto, que aún no se han presentado.
가벨리 멀티미디어 신탁(뉴욕 증권 거래소:GGT)은 이사회가 시장 가격(ATM) 공모를 승인했다고 발표했습니다. 이는 순자산가치(NAV)보다 높은 가격으로 보통주를 발행하는 것입니다. 이 전략적 조치는 모든 주주에게 긍정적으로 작용할 것이며, 주식은 현재의 NAV를 초과하는 가격으로 발행됩니다.
펀드 이사회는 주주가 추가 보통주를 구독할 수 있는 기회를 포함하여 자본 구조를 계속 평가하고 있습니다. GGT는 이전에 여섯 번의 권리 공모를 완료했습니다. ATM 공모의 판매 시기와 규모는 펀드에 의해 결정된 여러 요인에 따라 달라질 것입니다.
ATM 공모에서 발생한 수익은 펀드의 투자 목표에 따라 적절한 기회가 생길 때 투자될 것입니다. 이 공모는 SEC에 등록된 shelf 등록 성명을 통해 진행되며, 이에 따라 보충 설명서와 함께하는 설명서가 필요하며, 이는 아직 제출되지 않았습니다.
Le Gabelli Multimedia Trust (NYSE:GGT) a annoncé que son Conseil d'Administration a autorisé des offres at-the-market (ATM) d'actions ordinaires à des prix supérieurs à la valeur nette des actifs (NAV). Ce mouvement stratégique serait avantageux pour tous les actionnaires, les actions étant émises à des prix dépassant le NAV actuel par action.
Le Conseil du Fonds continue d'évaluer sa structure de capital, y compris les opportunités pour les actionnaires de souscrire des actions ordinaires supplémentaires. GGT a précédemment complété six offres de droits. Le moment et le volume des ventes dans le cadre de l'offre ATM dépendront de divers facteurs déterminés par le Fonds.
Les produits de l'offre ATM seront investis conformément aux objectifs d'investissement du Fonds au fur et à mesure que des opportunités appropriées se présenteront. L'offre sera réalisée par le biais d'une déclaration d'enregistrement de shelf auprès de la SEC, nécessitant un supplément de prospectus et un prospectus accompagnant, qui doivent encore être déposés.
Der Gabelli Multimedia Trust (NYSE:GGT) hat bekannt gegeben, dass sein Vorstand At-the-Market (ATM) Angebote für Stammaktien zu Preisen über dem Nettoinventarwert (NAV) genehmigt hat. Dieser strategische Schritt wäre vorteilhaft für alle Aktionäre, da die Aktien zu Preisen ausgegeben würden, die den aktuellen NAV pro Aktie übersteigen.
Der Vorstand des Fonds bewertet weiterhin seine Kapitalstruktur, einschließlich der Möglichkeiten für Aktionäre, zusätzliche Stammaktien zu zeichnen. GGT hat zuvor bereits sechs Bezugsrechtsangebote abgeschlossen. Der Zeitpunkt und das Volumen der Verkäufe im Rahmen des ATM-Angebots hängen von verschiedenen Faktoren ab, die vom Fonds bestimmt werden.
Die Erlöse aus dem ATM-Angebot werden gemäß den Anlagezielen des Fonds investiert, sobald geeignete Gelegenheiten entstehen. Das Angebot wird durch eine Shelf-Registrierungsmitteilung bei der SEC durchgeführt, die einen Prospektzusatz und einen begleitenden Prospekt erfordert, die noch eingereicht werden müssen.
- ATM offerings will be accretive to shareholders as shares will be sold above NAV
- Flexible capital raising mechanism allowing strategic timing of share sales
- Demonstrated experience with capital raising through six previous rights offerings
- Potential dilution of existing shareholders' voting power
- Future share issuance may pressure stock price if market conditions change
Insights
Gabelli Multimedia Trust's newly authorized ATM (at-the-market) offering represents a shareholder-friendly capital management strategy with positive implications for existing investors. The key feature of this authorization is the stipulation that new shares will only be issued when trading at a premium to net asset value (NAV), ensuring any share issuances would be accretive rather than dilutive to current shareholders.
This approach marks a strategic evolution from GGT's historical capital raising methods. While the fund has previously completed six rights offerings, ATM offerings provide greater flexibility, allowing management to capitalize on favorable market conditions with precision timing and in calibrated amounts. The fund can opportunistically tap the market when shares command premium pricing, rather than conducting larger discrete capital raises.
For closed-end funds like GGT, trading above NAV is relatively uncommon, as many typically trade at discounts to their underlying asset values. This authorization suggests management anticipates periods where market demand for GGT shares will exceed their intrinsic value, creating windows for accretive capital raises.
The proceeds from any issuances would be invested according to the fund's existing investment objectives, potentially expanding the asset base without strategy deviation. By increasing assets under management while preventing value erosion, this mechanism could enhance economies of scale, potentially spreading fixed costs across a larger asset base while maintaining the fund's investment focus.
While the authorization itself doesn't guarantee immediate implementation, it establishes a structural advantage that demonstrates prudent financial governance and positions the fund to capitalize on favorable market conditions when they arise.
RYE, N.Y., April 09, 2025 (GLOBE NEWSWIRE) -- The Board of Directors of The Gabelli Multimedia Trust Inc. (NYSE:GGT) (the “Fund”) has authorized the Fund to conduct offerings of common stock in “at the market” transactions (“ATM offering”),at prices above the net asset value, which would be accretive to the common shares.
The Board of Directors will continue to evaluate the Fund’s capital structure, including the ability for shareholders to subscribe for additional common stock. The Fund has previously completed six rights offerings.
In the ATM offering, the Fund may issue and sell, from time to time, shares of its common stock when such shares are trading at a premium to the Fund’s net asset value per share. Such sales would be accretive to all shareholders of the Fund as these shares would be issued at prices above the then current net asset value per share. The timing of any sales and the number of shares sold, if any, will depend on a variety of factors to be determined by the Fund. The Fund anticipates that the investment of the proceeds from the ATM offering will be made in accordance with the Fund’s investment objective and policies as appropriate investment opportunities are identified.
The ATM offering will be made pursuant to the Fund’s currently effective shelf registration statement on file with the Securities and Exchange Commission (“SEC”) and only by means of a prospectus supplement and accompanying prospectus. A final prospectus supplement and accompanying prospectus will be filed with the SEC, but has not been filed as of the date hereof.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor will there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction
Investors should read the prospectus supplement and accompanying prospectus, when available, and carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. For more information regarding the Fund, visit www.gabelli.com or call:
Carter Austin
(914) 921-5475
About The Gabelli Multimedia Trust
The Gabelli Multimedia Trust Inc. is a non-diversified, closed-end management investment company with
NYSE: GGT
CUSIP – 36239Q109
Investor Relations Contact:
Carter Austin
(914) 921-5475
caustin@gabelli.com
FAQ
What is the purpose of GGT's new ATM offering authorization?
How many rights offerings has GGT completed before this ATM authorization?
When will GGT begin selling shares under the ATM offering?
How will GGT use the proceeds from the ATM offering?
