The Herzfeld Caribbean Basin Fund, Inc. Extends Expiration Date of Non-Transferable Rights Offering; Reinstates Quarterly Distribution; Revises Self-Tender Policy; Extends Management Fee Waiver; and Reports Results of Annual Stockholder Meeting - Seite 3

Revisions to Self-Tender Policy

The Board also approved preliminary terms for the next tender offer to be conducted under the Fund’s Self-Tender Policy. As previously announced, the Fund intends to conduct a tender offer for its shares within a reasonable amount of time after the closing of the Rights Offer.

Under the Self-Tender Policy, the Fund has undertaken to commence a tender offer of up to 5% of outstanding shares of the Fund at 97.5% of NAV if the average discount was greater than 10% for the fiscal year just ended. As the average discount for the fiscal year ending June 30, 2023 exceeded 10%, the Fund has undertaken to commence a tender offer in the first calendar quarter of 2024 (Q1) (the “Tender Offer”) and that such Tender Offer will be for between 10% and 20% of the Fund’s outstanding shares, rather than 5% of outstanding shares under the prior Self-Tender Policy. The determination of the percentage of shares to be repurchased under the Tender Offer will be made after the conclusion of the Rights Offer.

The formal offer and detailed terms of the Tender Offer will be announced in Q1 2024.

Extension of Management Fee Waiver

HERZFELD/CUBA, a division of Thomas J. Herzfeld Advisors, Inc. (“TJHA”), the investment advisor for the Fund, previously agreed to waive its management fee by ten (10) basis points (from 1.45% to 1.35%) for any fiscal year if the Fund’s average discount to NAV during the preceding fiscal year is greater than 5%. TJHA has extended that fee waiver through June 30, 2024 and has further agreed to waive its management fee on the Fund’s net assets in excess of $30 million by an additional ten (10) basis points. Accordingly, effective immediately TJHA’s management fee after the voluntary waiver will be (i) 1.35% of the Fund’s assets up to and including $30 million and (ii) 1.25% of the Fund’s assets in excess of $30 million.

Results of 2023 Annual Meeting of Stockholders

In addition, the Fund held its annual stockholder meeting on November 16, 2023 (“Annual Meeting”). At the Annual Meeting, the Fund’s stockholders re-elected Mr. Thomas J. Herzfeld as Class III Director for the Fund for a term of three years. Mr. Herzfeld commented: “Our Board continues to provide stable and expert guidance to the Fund and its stockholders. The independent Board members have served our stockholders well and we are fortunate to have Board members of such high quality and expertise guiding the Fund through the current complicated investment environment. I am very pleased to be able to serve on the Board with these accomplished professionals. Our decisions announced today reflect the Board’s commitment to the interests of the Fund’s long-term shareholders.”