NEW YORK, NY--(Marketwired - Dec 16, 2014) - Cornerstone Progressive Return Fund (
The stockholders of CLM and CRF each approved the proposals for the Reverse Split at special stockholder meetings and, as previously announced, the Board of Trustees of CFP approved the Reverse Split for CFP shareholders. Distributions for each Fund will continue as previously declared on November 14, 2014 for record dates occurring in 2015.
The Reverse Splits will result in every four outstanding shares being converted into one share, thereby reducing the number of outstanding shares by a factor of four. Stockholders/shareholders will be paid cash for any fractional shares that may result from the Reverse Split, except for stockholders/shareholders participating in the Funds' 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.
Beginning on the Effective Date, the Funds are expected to trade on a split-adjusted basis under new CUSIP numbers of 21924B302 for CLM, 21924U300 for CRF and 21925C200 for CFP. The Funds will continue to trade under their old CUSIP numbers through December 26, 2014.
The Funds will not issue new post-split share certificates. Current holders of certificates representing pre-split shares of the Funds will receive non-certificated post-split shares, meaning their holdings will be reflected only in the Funds' record books. Holders of certificates will not be able to trade their shares until they surrender their pre-split share certificates. However, all 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, 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.