NEW YORK, NY--(Marketwired - Dec 29, 2014) - Cornerstone Progressive Return Fund (
The Reverse Splits resulted in every four outstanding shares being converted into one share, thereby reducing the number of outstanding shares by a factor of four. For CFP, the number of outstanding shares of beneficial interest was reduced from 66,260,614 to approximately 16,565,153. For CLM, the number of outstanding shares of common stock was reduced from 32,779,170 to approximately 8,194,792. For CRF, the number of outstanding shares of common stock was reduced from 17,908,591 to approximately 4,477,147.
Stockholders/shareholders will be paid cash for any fractional shares that may result from the Reverse Split, except for stockholders/shareholders participating in each Fund's Dividend Reinvestment Plan, who will receive fractional shares. Once the Reverse Splits are complete, each stockholder/shareholder account will reflect fewer shares with a higher net asset value and market price per share. It is anticipated that each Fund's trading price may initially increase by a factor of four, making it potentially available to a wider range of investors. Each stockholder/shareholder will hold the same percentage of its Fund's outstanding shares immediately following the Reverse Split as held immediately prior to the split, subject to rounding adjustments for the intended sale of fractional shares resulting from each transaction.
The Funds will not issue new post-split share certificates. Current holders of certificates representing pre-split shares of the Funds will receive additional information regarding the reverse stock split from the Funds' transfer agent, American Stock Transfer & Trust Co., LLC. Any holders of certificates representing pre-split shares of the Funds' common shares, upon submitting their pre-split certificate shares, will receive non-certificated post-split shares of the Funds' common share, meaning a shareholder's/stockholder's holdings of post-split shares will be reflected only in the Funds' record books and no new share certificates will be issued. Please note that holders of certificates will not be able to trade their shares until they surrender their pre-split share certificates. However, all Fund distributions will continue to be made without interruption.
Although the Reverse Split will not result in a taxable transaction for stockholders/shareholders of the Funds, the exchange of fractional shares for cash may cause some stockholders/shareholders to realize gains or losses for those fractional shares, which could create a taxable event for those stockholders/shareholders.
Cornerstone Progressive Return Fund, Cornerstone Strategic Value Fund, Inc. and Cornerstone Total Return Fund, Inc. are traded on the NYSE MKT exchange under the trading symbols "CFP," "CLM," and "CRF", respectively. Each Fund's investment adviser is Cornerstone Advisors, Inc. For more information regarding each Fund please visit www.cornerstoneprogressivereturnfund.com, www.cornerstonestrategicvaluefund.com and www.cornerstonetotalreturnfund.com.
Past performance is no guarantee of future performance. An investment in a 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 a Fund's investment objective, risks, charges and expenses. Please read a Fund's disclosure documents before investing.
In addition to historical information, this release 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.