The Herzfeld Caribbean Basin Fund, Inc. Announces Preliminary Results of Rights Offering

MIAMI BEACH, Fla., Dec. 14, 2023 (GLOBE NEWSWIRE) -- The Herzfeld Caribbean Basin Fund, Inc. (NASDAQ: CUBA) (the “Fund”) today announced the preliminary results of its non-transferable rights offering (the “Offering”) that expired on December 13, 2023 (the “Expiration Date”). In the Offering, the Fund received subscription requests for 14,371,838 shares of common stock from rights holders.

The Offering’s final subscription price per share was determined to be $2.35. The subscription price was established pursuant to the terms of the Offering and based on a formula equal to 92% of the volume-weighted average closing sales price of a share of Common Stock on the NASDAQ Capital Market on the Expiration Date of the Offering and the four preceding trading days.

The Offering was oversubscribed and the over-subscription requests exceeded the primary subscription shares available. Accordingly, a minimum of 7,150,673 shares will be issued as part of the Primary Subscription as described in the registration statement related to the Offering. The Fund may, but is not required to, issue an additional number of shares (up to 200% of the Primary Subscription) to meet over-subscription requests. The Fund will make a determination of whether to allocate available shares pro rata among fully exercising stockholders (pursuant to the formula as described in the prospectus) and to what extent to honor over-subscription requests upon receipt of final results of the Offering and receipt of payment for “delivery-guaranteed” subscriptions, on or about December 18, 2023.  Gross proceeds from the Offering are expected to total approximately $16.8 million to up to $33.7 million, before expenses, depending upon the amount of additional over-subscription shares, if any, issued by the Fund.

The foregoing numbers are estimates only. The Fund will announce the final results of the Rights Offering in a press release on or about December 18, 2023.

The final subscription price is lower than the original estimated subscription price of $2.57 per share. Accordingly, any excess payments will be returned to subscribing rights holders as soon as practicable, in accordance with the prospectus supplement and accompanying prospectus, filed with the Securities and Exchange Commission on November 22, 2023.