Cornerstone Strategic Investment Fund completes a one-for-three rights offering, raising approximately $173 million with a subscription price of $7.30.
Quiver AI Summary
Cornerstone Strategic Investment Fund, Inc. has completed its one-for-three rights offering, which allowed stockholders to purchase new shares of common stock at a subscription price of $7.30, higher than the initially estimated price of $6.61. The offering expired on May 16, 2025, and the Fund received approximately $173 million in requests for shares. Over-subscription shares are expected to be issued as well. New shares will not be eligible for the Fund's May 2025 distribution and are anticipated to be issued on or around May 22, 2025. The Fund is a closed-end, diversified management investment company traded on NYSE American under the symbol "CLM" and is advised by Cornerstone Advisors, LLC. Investors should consider the associated risks and review relevant documents before investing.
Potential Positives
- The completion of the one-for-three rights offering, which generated approximately $173 million in requests for new shares, indicates strong investor interest and confidence in the Fund.
- The subscription price of $7.30, which is higher than the original estimated price of $6.61, reflects a positive valuation increase for the Fund's shares.
- The anticipated issuance of over-subscription shares under the additional subscription privilege suggests demand beyond the initial offering, enhancing shareholder engagement.
- The offering allows existing shareholders to maintain their proportional ownership in the Fund, which is an advantageous move for current investors.
Potential Negatives
- The subscription price for newly issued shares was set higher than the original estimated price, indicating a potential negative market perception or lower demand than anticipated.
- The newly issued shares will not qualify for the Fund's distribution to stockholders for May 2025, which could lead to dissatisfaction among recent investors.
FAQ
What is the Cornerstone Strategic Investment Fund's recent rights offering?
The Fund completed a one-for-three rights offering, allowing stockholders to purchase shares at $7.30 each until May 16, 2025.
How much did the Cornerstone Strategic Investment Fund receive in requests?
The Fund received requests for approximately $173 million of its shares during the rights offering.
When will the newly issued shares be available?
The newly issued shares are expected to be issued on or about Thursday, May 22, 2025.
Will newly issued shares receive distributions for May 2025?
No, newly issued shares will not be entitled to the Fund’s distribution for the month of May 2025.
Where can I find more information about the Fund?
Additional information can be found on the Fund's official websites: www.cornerstonestrategicinvestmentfund.com and www.cornerstonetotalreturnfund.com.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$CLM Hedge Fund Activity
We have seen 61 institutional investors add shares of $CLM stock to their portfolio, and 70 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- BANK OF AMERICA CORP /DE/ added 1,705,288 shares (+861.5%) to their portfolio in Q1 2025, for an estimated $12,670,289
- TABOR ASSET MANAGEMENT, LP added 662,760 shares (+inf%) to their portfolio in Q1 2025, for an estimated $4,924,306
- TRUEMARK INVESTMENTS, LLC removed 647,416 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $4,810,300
- YAKIRA CAPITAL MANAGEMENT, INC. added 628,587 shares (+1839.4%) to their portfolio in Q1 2025, for an estimated $4,670,401
- RIVERNORTH CAPITAL MANAGEMENT, LLC removed 597,292 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $5,130,738
- STRATEGIC FINANCIAL CONCEPTS, LLC removed 569,144 shares (-88.8%) from their portfolio in Q1 2025, for an estimated $4,228,739
- KARPUS MANAGEMENT, INC. removed 491,832 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $3,654,311
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
NEW YORK, May 19, 2025 (GLOBE NEWSWIRE) -- Cornerstone Strategic Investment Fund, Inc. (the “Fund”) (NYSE American: CLM) (CUSIP: 21924B302) 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 $7.30 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 $173 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 $6.61. 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 Strategic Investment 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 Strategic Investment Fund, Inc. is traded on the NYSE American under the trading symbol “CLM”. The Fund’s investment adviser is Cornerstone Advisors, LLC, which also serves as the investment adviser to another closed-end fund, Cornerstone Total Return Fund, Inc. (NYSE American: CRF). 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.
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