RENN Fund, Inc. Announces Results of Rights Offering

Rhea-AI Summary

The RENN Fund (NYSE MKT: RCG) announced successful results from its non-transferable rights offering, closing on January 21, 2022, and generating approximately $2.1 million, the maximum allowed. Shareholders submitted subscriptions totaling 317% of available shares, leading to a prorated distribution of oversubscribed shares. A total of 1,487,989 shares were sold at $1.98 each, with distributions commencing January 26, 2022. The total outstanding shares will now be 7,015,785. Horizon Kinetics Asset Management covered all offering expenses, ensuring net proceeds remain unchanged.

Positive

• Successfully raised maximum gross proceeds of approximately $2.1 million from the rights offering.
• High shareholder interest with subscriptions of 317% of available shares, indicating strong market confidence.
• Managed by Horizon Kinetics, which covered all fees, allowing the Fund to retain full net proceeds.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- The RENN Fund, Inc. (NYSE MKT: RCG) (the “Fund”) announced today the results of its non-transferable rights offering to shareholders of record, which closed to subscriptions on January 21, 2022. Aggregate gross proceeds to the Fund were approximately $2,106,383.40, the maximum permitted under the terms of the offering. Horizon Kinetics Asset Management (HKAM), the investment manager to the Fund, previously agreed to pay for all fees and expenses in connection with the Offering so the total net proceeds to the Fund will be the same.

Shareholders submitted subscriptions for 317% of the permitted subscriptions. As a result, the number of shares sold pursuant to oversubscription privileges to shareholders who exercised their oversubscription privileges was prorated according to the terms described in the offering prospectus. Furthermore, since the offering was over-subscribed, no shares will be purchased in connection with the backstop agreement between Horizon and the Fund. Murray Stahl, a director of the Fund, exercised all of his basic rights but did not exercise any over-subscription privileges.

The Fund sold an aggregate of 1,487,989 shares of common stock at a purchase price of $1.98 per share. The shares of common stock are expected to be distributed to participants through the Fund’s transfer agent or through the clearing systems of the Depository Trust Company commencing January 26, 2022. Following this offering, the Fund will have 7,015,785 common shares outstanding.

The rights offering was made pursuant to a prospectus amendment filed December 3, 2021 to its previously filed registration statement on Form N-2 deemed effective by the Securities and Exchange Commission on December 6, 2021.

The Fund is a non-diversified, closed-end management company whose primary investment objective is to provide shareholders with above-market rates of return through capital appreciation and income by investing in a wide variety of financial instruments.

Disclosures:

This document is not an offer to sell any securities, which can only be made by a final prospectus. Investors should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. Fund shares are subject to investment risk, including possible loss of principal invested. No Fund is a complete investment program and you may lose money investing in a Fund. An investment in the Fund may not be appropriate for all

investors. There can be no assurance the objective of the Fund will be achieved, and past performance is not a guarantee of future results. Additional information about the Fund, including performance and portfolio characteristics, is available at https://horizonkinetics.com/investment-strategies/renn-fund-inc-nyse-rcg/.

Horizon Asset Management LLC is the investment adviser to the Fund. For additional information about Horizon, please visit us at www.horizonkinetics.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220127005794/en/

Jay Kesslen

646-867-1176

jkesslen@horizonkinetics.com

Source: RENN Fund, Inc.

FAQ

What were the results of the RCG rights offering announced on January 21, 2022?

The RCG rights offering raised approximately $2.1 million, with shareholders submitting subscriptions totaling 317% of available shares.

How many shares were sold in the RCG rights offering?

A total of 1,487,989 shares were sold at a price of $1.98 each.

What will be the total outstanding shares after the RCG rights offering?

After the offering, the total outstanding shares will be 7,015,785.

When will the shares from the RCG rights offering be distributed?

Shares are expected to be distributed to participants starting January 26, 2022.

Who managed the RCG rights offering?

Horizon Kinetics Asset Management managed the offering and covered all associated fees.