Cornerstone Total Return Fund, Inc. Announces Completion of Rights Offering
NEW YORK, NY -- (MARKET WIRE) -- 12/19/11 -- Cornerstone Total Return Fund, Inc. (the "Fund")(NYSE Amex: CRF) is pleased to announce the completion of its one-for-three rights offering which expired Friday, December 16, 2011. The rights offering was over-subscribed. Under the terms of the rights 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 $5.54 which, under the terms of the prospectus, was the greater of (i) 102% of net asset value per share as calculated at the close of trading on the date of expiration of the Offering and (ii) 90% of the market price per share.
Based on preliminary results provided by the Fund's subscription agent, the Fund received requests for approximately $21.5 million of its shares. Additional information regarding the method for allocating shares under the over-subscription privilege may be found in the prospectus.
The subscription price is lower than the original estimated subscription price of $7.48. Under the prospectus, any excess payment is to be applied to the purchase of unsubscribed shares. It is anticipated that shares will be issued on or shortly after Wednesday, December 21, 2011. Stockholders are encouraged to contact their broker regarding the specifics of their account. Newly issued shares will not be entitled to the December distribution.
Cornerstone Total Return Fund, Inc. is a diversified, closed-end management company incorporated in New York and is registered with the SEC (SCUR) under the Investment Company Act of 1940, as amended. The Fund is listed on the NYSE Amex under the ticker symbol "CRF."
Contact: Cornerstone Advisors (513) 326-3597
Source: Cornerstone Total Return Fund, Inc.