Dividend and Income Fund Announces Terms of Rights Offering
(firmenpresse) - NEW YORK, NY -- (Marketwired) -- 09/17/15 -- Dividend and Income Fund (the "Fund") (NYSE: DNI) today announced that its Board of Trustees approved the terms of a non-transferable rights offering which would allow the Fund's record date shareholders to purchase up to 2,900,000 additional shares of beneficial interest.
The Board of Trustees has determined that it would be in the best interests of the Fund and its shareholders to increase the assets of the Fund and that the rights offering is currently an effective and efficient way to raise additional assets for the Fund. Additionally, the rights offering provides Fund shareholders with the opportunity to purchase additional shares at a price below market value, and potentially below net asset value ("NAV"), without paying any commissions.
The record date of the rights offering is September 28, 2015. The rights offering is expected to expire on October 30, 2015, unless otherwise extended by the Fund (the "expiration date").
The Fund will distribute to shareholders of record one right for each share held on the record date, rounded up to the nearest number of rights evenly divisible by three. These rights entitle holders to buy new shares of the Fund. For every three rights received, shareholders can buy one new share of the Fund, plus in certain circumstances additional new shares pursuant to an over-subscription privilege. Fractional common shares will not be issued. Shares obtained through the exercise of rights will not be eligible to receive the Fund's quarterly dividend to be paid in September 2015.
The subscription price will be based on a formula equal to 95% of the market price per share. For this purpose, the market price per share will be the average of the last reported sales price of a share on the NYSE on expiration date, and the four preceding trading days. If, however, this formula price is less than 80% of the NAV per share on the expiration date, then the subscription price will be 80% of the NAV per share on such date. The estimated subscription price has not yet been determined by the Fund.
Record date shareholders who fully exercise all of their primary subscription rights will be eligible for an over-subscription privilege entitling those shareholders to subscribe, subject to certain limitations and subject to allotment, for additional shares covered by any unexercised rights. In addition, the Fund may increase the number of shares subject to subscription through the exercise of the over-allotment option by up to 25%.
The Fund expects to send a prospectus for the offer and subscription certificates evidencing the rights offering to record date shareholders within the United States following the record date. Shareholders who hold their shares through a broker, bank or trust company and wish to exercise their rights should contact their representative with instructions to exercise their rights. Shareholders who hold shares directly and wish to exercise their rights should complete the subscription certificate they receive in the mail and send it to the subscription/information agent for the offer, together with their payment, as described in the subscription certificate or in the prospectus.
The Fund is a non-diversified, closed end investment company. The Fund's primary investment objective is to seek high current income. Capital appreciation is a secondary objective. Bexil Advisers LLC is the Fund's investment manager. This information, and other information concerning the Fund, can be found on file with the U.S. Securities and Exchange Commission and .
Contact:
Thomas O'Malley
Chief Financial Officer
1-212-785-0900 ext. 267
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Datum: 17.09.2015 - 21:27 Uhr
Sprache: Deutsch
News-ID 421024
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NEW YORK, NY
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