NEW YORK, NY -- (Marketwired) -- 10/14/14 -- Cornerstone Progressive Return Fund (NYSE MKT: CFP), Cornerstone Strategic Value Fund, Inc. (NYSE MKT: CLM) and Cornerstone Total Return Fund, Inc. (NYSE MKT: CRF), (individually the "Fund" or, collectively, the "Funds"), each a closed-end management investment company, today announced that the Board of Directors/Trustees of each Fund (the "Board") has determined that each Fund would benefit if its shares of common stock or shares of beneficial interest (collectively "Shares") traded at a higher market price than the current market price per share, especially since the Board is aware that some investors may be restricted from purchasing Shares that are trading below a certain market price. Further, each Board believes that such a reverse stock split may be desirable because the increased market price is expected to encourage investor interest and trading in Fund shares. However, the Funds cannot predict whether a reverse stock split would achieve the desired results. To support this purpose, as well as to provide firm reassurance as to the ongoing sustainability of the Funds, the Board has further determined that it is in the best interests of each Fund and its stockholders/shareholders to effect a reverse split of each Fund's Shares on the basis of one new Share for each four Shares (one-for-four) of presently outstanding Shares. Although no assurances can be given, each Board believes that a reverse split may have the effect of increasing each Fund's market price and may have the effect of increasing each Fund's net asset value per share.
The Board of Cornerstone Progressive Return Fund ("CFP") has determined that it is in the best interest of the Fund and its shareholders and in accordance with CFP's Declaration of Trust to declare a reverse split of the Fund's shares of beneficial interest in a one-for-four split ("Reverse Split"). The Board has approved the Reverse Split and it is anticipated that the proposed Reverse Split will become effective on or about December 31, 2014, subject to appropriate regulatory approvals. During the five years from June 30, 2009 through June 30, 2014, the Fund's net assets have grown from $57.3 million to $289.3 million, net of distributions totaling $6.60 per share, due to portfolio performance, the results of rights offerings and distribution reinvestments for the period.
The Board of Cornerstone Strategic Value Fund, Inc. ("CLM") has determined that it is in the best interest of the Fund and its stockholders to adopt an amendment ("Amendment") to CLM's Articles of Incorporation to effect a reverse split of the Fund's common stock in a one-for-four split ("Reverse Split"), subject to the approval of stockholders. The Fund will schedule a Special Meeting of Stockholders as soon as practicable to approve the Amendment adopted by the Board. It is anticipated that, upon receiving the requisite shareholder approval, the Amendment will, subject to the discretion of the Board, be filed with the appropriate authorities and that the proposed Reverse Split will become effective on or about December 31, 2014, subject to appropriate regulatory approvals. During the five years from June 30, 2009 through June 30, 2014, the Fund's net assets have grown from $53.2 million to $181.5 million, net of distributions totaling $7.40 per share, due to portfolio performance, the results of rights offerings and distribution reinvestments for the period.
The Board of Cornerstone Total Return Fund, Inc. ("CRF") has determined that it is in the best interest of the Fund and its stockholders to adopt an amendment ("Amendment") to CRF's Certificate of Incorporation to effect reverse split of the Fund's common stock in a one-for-four split ("Reverse Split"), subject to the approval of stockholders. The Fund will schedule a Special Meeting of Stockholders as soon as practicable to approve the Amendment adopted by the Board. It is anticipated that, upon receiving the requisite stockholder approval, the Amendment will, subject to the discretion of the Board, be filed with the appropriate authorities and that the proposed Reverse Split will become effective on or about December 31, 2014, subject to appropriate regulatory approvals. During the five years from June 30, 2009 through June 30, 2014, the Fund's net assets have grown from $19.1 million to $88.0 million, net of distributions totaling $6.53 per share, due to portfolio performance, the results of rights offerings and distribution reinvestments for the period.
Subject to approval by the stockholders of CLM and CRF, as of the date that a Fund implements a Reverse Split, the number of Shares held by each stockholder would be reduced by dividing the number of Shares held immediately before the Reverse Split by the exchange ratio (one-for-four for each Fund). It is each Board's intention to continue the previously announced distribution policy, therefore, any distributions that have been declared prior to the Reverse Split for record dates occurring after that Fund's Reverse Split will be increased accordingly. Additional information will be contained in proxy documents pertaining to each Special Meeting of Stockholders. Stockholders are urged to review these proxy documents that will be sent to all stockholders of record.
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.
