Special Opportunities Fund, Inc. Announces Dividend Declaration, Redemption of Convertible Preferred Stock, Increased Dividend, and Rights Offering
Special Opportunities Fund, Inc. (NYSE: SPE) (the “Fund”) today announced that the Fund’s Board of Directors (the “Board”) has declared a quarterly cash dividend of
The Fund also announced that the Board has determined, in accordance with the “Optional Redemption” provision of the prospectus for the Convertible Preferred, to redeem all shares of the Convertible Preferred that are still outstanding at 5 pm EST on July 9, 2021 at
Holders of the Convertible Preferred may, until 5 pm EST on July 9, 2021, convert their preferred shares into shares of Common Stock at a ratio of (1) 1.9416 shares of common stock for each share of the Convertible Preferred until June 21, 2021 and (2) 1.9558 from June 22, 2021 until July 9, 2021 (in both instances, Holders will receive cash in lieu of any fractional shares of common stock). Holders of shares of the Convertible Preferred that do not elect to convert their shares into common stock by 5 pm EST on July 9, 2021 will receive the redemption price of
No shares of the Convertible Preferred will remain outstanding after July 9, 2021; therefore, the directors previously elected by holders of the Convertible Preferred will remain on the Board until the next Annual Meeting of Stockholders and until their successors have been duly elected.
The Fund also announced that the Board has approved an increase in the monthly distributions to common stockholders provided under the Fund’s managed distribution plan (the “Plan”). Beginning in July 2021, the Fund intends to make monthly distributions at an annual rate of at least
Lastly, the Fund announced that the Board has approved filing with the SEC a registration statement for a rights offering to common stockholders entitling the holders of such rights to purchase shares of a newly issued class of convertible preferred stock. Although the terms of the rights offering have not yet been established by the Board, a portion of the funds raised may be used to conduct a self-tender offer for common stock.
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