NEW YORK, NY--(Marketwired - Dec 29, 2014) - 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" and collectively, the "Funds"), each a closed-end management investment company, announced that the previously disclosed one-for-four reverse stock split ("Reverse Split") for each Fund was executed today prior to the opening of trading on the NYSE MKT exchange. Trading of the Funds' shares on a split-adjusted basis will begin today under new CUSIP numbers of 21924B302 for CLM, 21924U300 for CRF and 21925C200 for CFP.
The Reverse Splits resulted in every four outstanding shares being converted into one share, thereby reducing the number of outstanding shares by a factor of four. For CFP, the number of outstanding shares of beneficial interest was reduced from 66,260,614 to approximately 16,565,153. For CLM, the number of outstanding shares of common stock was reduced from 32,779,170 to approximately 8,194,792. For CRF, the number of outstanding shares of common stock was reduced from 17,908,591 to approximately 4,477,147.
Stockholders/shareholders will be paid cash for any fractional shares that may result from the Reverse Split, except for stockholders/shareholders participating in each Fund's Dividend Reinvestment Plan, who will receive fractional shares. Once the Reverse Splits are complete, each stockholder/shareholder account will reflect fewer shares with a higher net asset value and market price per share. It is anticipated that each Fund's trading price may initially increase by a factor of four, making it potentially available to a wider range of investors. Each stockholder/shareholder will hold the same percentage of its Fund's outstanding shares immediately following the Reverse Split as held immediately prior to the split, subject to rounding adjustments for the intended sale of fractional shares resulting from each transaction.
The Funds will not issue new post-split share certificates. Current holders of certificates representing pre-split shares of the Funds will receive additional information regarding the reverse stock split from the Funds' transfer agent, American Stock Transfer & Trust Co., LLC. Any holders of certificates representing pre-split shares of the Funds' common shares, upon submitting their pre-split certificate shares, will receive non-certificated post-split shares of the Funds' common share, meaning a shareholder's/stockholder's holdings of post-split shares will be reflected only in the Funds' record books and no new share certificates will be issued. Please note that holders of certificates will not be able to trade their shares until they surrender their pre-split share certificates. However, all Fund distributions will continue to be made without interruption.