Cornerstone Total Return Fund, Inc. Announces Completion Of Rights Offering

Rhea-AI Summary

Cornerstone Total Return Fund (NYSE: CRF) has successfully completed its one-for-three rights offering that expired on May 16, 2025. The subscription price was set at $6.97 per share, higher than the initial estimate of $6.29. The Fund received substantial interest with requests totaling approximately $207 million in shares.

The subscription price was determined as the greater of 112% of NAV or 80% of market price at expiration. The Fund plans to issue over-subscription shares, with new shares expected to be issued around May 22, 2025. Notably, newly issued shares will not be eligible for the Fund's May 2025 distribution.

Positive

• Received significant interest with $207 million in share requests
• Successfully completed rights offering with higher subscription price than estimated ($6.97 vs $6.29)

Negative

• Dilutive effect on existing shareholders through new share issuance
• New shares not eligible for May 2025 distribution

NEW YORK, May 19, 2025 (GLOBE NEWSWIRE) -- Cornerstone Total Return Fund, Inc. (the “Fund”) (NYSE American: CRF) (CUSIP: 21924U300) is pleased to announce the completion of its one-for-three rights offering which expired on Friday, May 16, 2025 (the “Offering”). Under the terms of the Offering, record date stockholders were entitled to purchase one newly issued share of common stock of the Fund for every three rights held. The subscription price for each newly issued share was determined to be $6.97 which, under the terms of the prospectus, was equal to the greater of (i) 112% of net asset value per share as calculated at the close of trading on the date of expiration of the Offering and (ii) 80% of the market price per share at such time.

Based on preliminary results provided by the Fund's subscription agent, the Fund received requests for approximately $207 million of its shares. The Fund anticipates issuing over-subscription shares under the additional subscription privilege. 

The subscription price is higher than the original estimated subscription price of $6.29. It is anticipated that shares will be issued on or about Thursday, May 22, 2025. Stockholders are encouraged to contact their broker regarding the specifics of their account. Newly issued shares will not be entitled to the Fund’s distribution to stockholders for the month of May 2025.

Cornerstone Total Return Fund, Inc. is a closed-end, diversified management investment company and is registered with the U.S. Securities & Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended.

Cornerstone Total Return Fund, Inc. is traded on the NYSE American under the trading symbol “CRF”. The Fund’s investment adviser is Cornerstone Advisors, LLC, which also serves as the investment adviser to another closed-end fund, Cornerstone Strategic Investment Fund, Inc. (NYSE American: CLM). For more information regarding Cornerstone Strategic Investment Fund, Inc. or Cornerstone Total Return Fund, Inc. please visit www.cornerstonestrategicinvestmentfund.com, and www.cornerstonetotalreturnfund.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 that is more or less than the original purchase price or the net asset value. An investor should carefully consider the Fund’s investment objective, risks, charges and expenses. Please read the Fund’s disclosure documents before investing.

In addition to historical information, this report contains forward-looking statements, which may concern, among other things, domestic and foreign markets, industry and economic trends and developments and government regulation and their potential impact on the Fund’s investment portfolio. These statements are subject to risks and uncertainties, including the factors set forth in the Fund’s disclosure documents, filed with the SEC, and actual trends, developments and regulations in the future and their impact on the Fund could be materially different from those projected, anticipated or implied. The Fund has no obligation to update or revise forward-looking statements.

Contact: (866) 668-6558

FAQ

What is the subscription price for CRF's rights offering in May 2025?

The subscription price for CRF's rights offering was set at $6.97 per share, which was higher than the original estimated price of $6.29.

How many shares could CRF shareholders purchase in the May 2025 rights offering?

Shareholders could purchase one newly issued share of common stock for every three rights held in the one-for-three rights offering.

When will CRF issue the new shares from the 2025 rights offering?

CRF anticipates issuing the new shares on or about Thursday, May 22, 2025.

Will the new CRF shares receive the May 2025 distribution?

No, newly issued shares from this rights offering will not be entitled to CRF's distribution for the month of May 2025.

How much interest did CRF's 2025 rights offering receive?

The Fund received requests for approximately $207 million of its shares in the rights offering.