The Herzfeld Caribbean Basin Fund, Inc. Announces Proposed Non-Transferable Rights Offer, Modification to Self-Tender Policy and Suspension of Managed Distribution Policy

MIAMI BEACH, Fla., Aug. 29, 2023 (GLOBE NEWSWIRE) -- Thomas J. Herzfeld Advisors, Inc., an SEC-registered investment advisor, today announced (i) the filing of a registration statement (the “Registration Statement”) with the Securities and Exchange Commission (“SEC”) for a proposed non-transferable rights offer to holders of common stock, par value $0.001 per share (“Common Stock”), of The Herzfeld Caribbean Basin Fund, Inc. (the “Fund”); (ii) a modification to the Fund’s Self-Tender Policy; and (iii) the indefinite suspension of the Fund’s Managed Distribution Policy.

Rights Offer

Under the terms of the rights offer (the “Rights Offer”), the Fund will issue non-transferable rights (the “Rights”) to its stockholders of record on a date to be disclosed in the prospectus (the “Record Date”). Each stockholder of record on the Record Date will receive one Right for each full share of the Fund’s Common Stock owned on the Record Date. The Rights will entitle the holders to purchase one share of the Fund’s Common Stock for every one Right held, and stockholders of record on the Record Date who fully exercise their Rights will be entitled to subscribe for additional shares of Common Stock (“Over-Subscription Shares”) subject to the limitation set forth in the prospectus. The Over-Subscription Shares will be allocated pro rata to stockholders who over-subscribe based on the number of Rights originally issued to them. The Fund may increase the number of shares of Common Stock subject to subscription by up to 200% of the shares. The rights are non-transferable and, therefore, may not be purchased or sold. The shares of Common Stock issued pursuant to the Rights Offer will be listed on the Nasdaq Capital Market under the symbol “CUBA.”

The subscription price per share will be 92% of the average volume-weighted closing sale price at which the Common Stock trades on the Nasdaq Capital Market on the Expiration Date (as defined in the prospectus) and the four preceding trading days.

The Registration Statement relating to the Rights Offer has been filed with the SEC but has not yet become effective. Final terms and important details of the proposed Rights Offer, including but not limited to the Record Date, Subscription Price and Expiration Date, will be determined at a later date and disclosed in the prospectus. Subject to making the necessary filings with the SEC and the Registration Statement being declared effective, it is expected that the Rights Offer will commence in October 2023.