RENN Fund Agrees to Be Taken Over by Horizon; New Manager May Hold Rights Offer

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RENN Fund ( RCG ) said Wednesday it has signed a letter of intent under which Horizon Kinetics, which has $6 billion under management, will take over investment management of the fund.

Under the proposed terms of the agreement, which is subject to shareholders' approval, Horizon would waive its management fee until the RENN Fund's assets reach $25 million, following which it would charge only 100 basis points on assets above $25 million, RENN said in a statement on Wednesday.

Horizon is considering recapitalizing the Fund through a rights offering or other means in order to achieve at least $10 million in Fund assets. Horizon may also conduct a tender offer for up to the lesser of 10% of the Fund's outstanding shares or $1 million worth of shares from existing shareholders at the Fund's net asset value.

The shares rose 3.7%, rising to as much as $1.50, reaching the upper bound of its 52-week range.

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This article appears in: Investing , ETFs
Referenced Symbols: RCG

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