RENN Fund, Inc. Announces Rights Offering for Shares of Common Stock, Record Date and Summary of Terms

Rhea-AI Summary

The RENN Fund, Inc. (NYSE MKT: RCG) announced the effectiveness of its non-transferable rights offering for common shareholders as of the Record Date, December 10, 2021. Each shareholder receives one right per share held, allowing them to purchase one new share for every three rights at a Subscription Price based on the lesser of specified averages. Horizon Kinetics Asset Management will cover all offering fees and has a backstop agreement to purchase remaining unsubscribed shares. The offering expires on January 21, 2022, and subscription certificates will be mailed starting December 17, 2021.

Positive

• The offering allows shareholders to purchase additional shares at potentially favorable pricing.
• Horizon Kinetics Asset Management covers all offering fees, benefiting the Fund's assets.
• Backstop agreement ensures that any unsubscribed shares will still be purchased, providing certainty for the Fund.

Negative

• The rights offering may lead to shareholder dilution if not all rights are exercised.
• -

NEW YORK--(BUSINESS WIRE)-- The Board of Directors of the RENN Fund, Inc. (NYSE MKT: RCG) (the “Fund”) announced today that the previously announced non-transferable rights offering (the “Offering”) to holders of its common shares of record at the close of business on December 10, 2021 (the “Record Date”) has been declared effective by the Securities and Exchange Commission. The Offering will only be made by a prospectus, and this announcement does not constitute an offer to sell any of the Fund’s securities.

Each shareholder will receive one non-transferable right for every share owned of the Fund held on the Record Date, and the number of rights will be rounded up to the nearest whole number evenly divisible by 3. For every 3 rights each shareholder receives, such shareholder will be entitled to buy one new share of the Fund (“Initial Subscription”). The subscription price per share (the “Subscription Price”) will be the lesser of:

(i) 105% of the average closing NAV per share over the three days of trading leading up to and including the expiration of the Offering, or

(ii) 90% of the average closing market price per share over the three days of trading leading up to and including the expiration of the Offering.

Record Date shareholders who fully exercise their rights under the Offering will be entitled to over-subscribe for any additional shares not purchased (“Over-Subscription”). The purchase price for all shares will be payable in cash.

Horizon Kinetics Asset Management LLC (“Horizon”), the investment manager to the Fund, has agreed to pay for all fees and expenses in connection with the Offering. As such, the full amount of the subscription proceeds will be contributed to the Fund’s assets. Additionally, Horizon has entered into a backstop agreement with the Fund, whereby Horizon will purchase all remaining unsubscribed shares, if any, after the Initial Subscription and Over-Subscription periods by shareholders.

The Offering and the rights issued thereunder will expire at 5:00 p.m. (EST) on January 21, 2022, unless extended by the Fund.

The Fund expects to mail Subscription Certificates evidencing rights and a copy of the prospectus for the Offering to Record Date shareholders beginning on or about December 17, 2021. Questions regarding the Offering should be directed to the Information Agent, AST Fund Solutions, at (866) 796-1292 or the Fund at (646) 495-7333.

The RENN Fund, Inc. is a non-diversified, closed-end management company with approximately $18.3 million in total net assets, 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. The prospectus contains this and additional information about the Fund and the Offering, and investors should read it carefully before investing. For further information regarding the Offering, or to obtain a prospectus, please contact AST Fund Solutions at (800) 628-8509.

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. Additional information about the Fund, including performance and portfolio characteristics, is available at https://horizonkinetics.com/investment-strategies/renn-fund-inc-nyse-rcg/.

Horizon Kinetics 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/20211208006119/en/

Jay Kesslen

Email: jkesslen@horizonkinetics.com

Phone: (646) 495-7333

Source: RENN Fund, Inc.

FAQ

What is the RCG rights offering announced on December 10, 2021?

The RCG rights offering allows shareholders to buy new shares at a favorable price based on market conditions.

When does the RCG rights offering expire?

The RCG rights offering expires at 5:00 p.m. EST on January 21, 2022.

Who manages the RCG Fund and covers the offering fees?

Horizon Kinetics Asset Management manages the RCG Fund and is paying all fees associated with the offering.

What are the subscription terms for RCG shareholders?

Shareholders receive one right for each share held, allowing them to buy one new share for every three rights at a determined subscription price.

What happens if not all shares are subscribed in the RCG offering?

Horizon Kinetics will purchase any remaining unsubscribed shares under a backstop agreement.