Cornerstone Strategic Value Fund, Inc. (NYSE American: CLM) announced today that the rights offering of shares of the Fund’s common stock will be suspended until further notice. After the announcement, the CLM stock gained substantially in the market trading session on Monday.
In accordance with an undertaking made by the Fund in the Registration Statement it filed with the Securities and Exchange Commission in connection with the Rights Offering, the Fund is suspending its Rights Offering until further notice due to the Fund’s net asset value having declined more than 10% from $9.01 on April 8, 2022 (the effective date of the Fund’s registration statement) to $7.76 on May 13, 2022. Subscribing stockholders will be permitted to cancel their exercise of rights until such as time as the Rights Offering is resumed.
This announcement is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. The offering is subject to an effective registration statement covering the rights and shares to be issued and to other customary regulatory filings and approvals. Any rights offering conducted by the Fund will be made only by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
The CLM stock was up by 10.93% and traded at $12.02 (gaining by 1.10 points) at 11:57 a.m. EDT in the market trading session today. The market capitalization of the stock stood at $1.46 billion. The share volume traded for the CLM stock was 5,085,949, much higher than the average trade volume of 1,983,936.