CUBA - The Herzfeld Caribbean Basin Fund Inc. Pays Quarterly Distribution | Benzinga
MIAMI BEACH, Fla., Jan. 31, 2024 (GLOBE NEWSWIRE) -- The Herzfeld Caribbean Basin Fund, Inc. (NASDAQ:CUBA) (the "Fund") today announced that the Fund has made the following distribution pursuant to the Fund's Managed Distribution Plan (the "Plan"):
| Declaration Date |
| Ex-Date |
| Record Date |
| Payment Date |
| Per Share |
| 12/19/2023 |
| 12/28/2023 |
| 12/29/2023 |
| 01/31/2024 |
| $0.135375 |
The distribution for stockholders has been paid in cash or shares of the Fund's common stock at the election of stockholders. The total amount of cash distributed to all stockholders was limited to 20% of the total distribution to be paid, excluding any cash paid for fractional shares. The remainder of the distribution (approximately 80%) was paid in the form of shares of the Fund's common stock. The exact distribution of cash and stock to any given stockholder was dependent upon his/her election as well as elections of other stockholders, subject to the pro-rata limitation.
The price used to calculate the number of shares to be issued in lieu of cash is $2.6336, which was determined using the volume weighted average price per share of the Fund on January 16, 17 and 18, 2024. The total amount of cash and shares distributed under the Plan was as follows:
| Total Cash |
| Total Shares |
| $437,354.93 |
| 664,103 |
Stockholders who elected to receive the distribution solely in shares of common stock and stockholders who did not make an election will receive approximately 0.0514 shares of common stock for each share of common stock they owned on the record date of December 29, 2023. Holders of approximately 20.20% of the Company's common stock elected to receive only stock or did not make an election.
Stockholders electing to receive the distribution in all cash will receive cash in the amount of $0.03393 per common share, or approximately 25.07% of the $0.135375 distribution, and $0.10144 shares of common stock, or approximately 74.93% of the total distribution for each share of common stock they owned on the record date of December 29, 2023. Cash in lieu of fractional shares will be issued, if applicable. Total outstanding shares of the Company's common stock following the distribution will be approximately 16,814,776.
The primary purpose of the Plan is to provide stockholders with a constant, but not guaranteed, fixed minimum rate of distribution each quarter (currently set at the annual rate of 15% of the Fund's net asset value as determined on December 19, 2023 and payable in quarterly installments). The Fund cannot predict what effect, if any, the Plan will have on the market price of its shares or whether such market price will reflect a greater or lesser discount to net asset value as compared to prior to the adoption of the Plan.
Under the Plan, the Fund will distribute all available investment income to its stockholders, consistent with its investment objective and as required by the Internal Revenue Code of 1986, as amended (the "Code"). The amount distributed per share is subject to change at the discretion of the Fund's Board of Directors ("Board"). If sufficient investment income is not available on a quarterly basis, the Fund will distribute long-term capital gains and/or return capital to its stockholders in order to maintain its managed distribution level. The Fund is currently ...