NEW YORK--(BUSINESS WIRE)--The RENN Fund, Inc. (NYSE MKT: RCG) (the “Fund”) announced today the results of its non-transferable rights offering to shareholders of record, which closed to subscriptions on February 8, 2019. Aggregate gross proceeds to the Fund were approximately $2.187 million, the maximum permitted under the terms of the offering. Horizon Asset Management LLC (“Horizon”), the investment manager to the Fund, previously agreed to pay for all fees and expenses in connection with the Offering so the total net proceeds to the Fund will be the same.
Shareholders submitted subscriptions for 166% of the permitted subscriptions. As a result, the number of shares sold pursuant to oversubscription privileges to shareholders who exercised their oversubscription privileges was prorated according to the terms described in the offering prospectus. Furthermore, since the offering was over-subscribed, no shares will be purchased in connection with the backstop agreement between Horizon and the Fund. Murray Stahl, a director of the Fund, exercised all of his basic rights but did not exercise any over-subscription privileges.
The Fund sold an aggregate of 1,487,989 shares of common stock at a purchase price of $1.47 per share. The shares of common stock are expected to be distributed to participants through the Fund’s transfer agent or through the clearing systems of the Depository Trust Company commencing February 12, 2019. Following this offering, the Fund will have 5,951,956 common shares outstanding.
The rights offering was made pursuant to a prospectus supplement filed December 13, 2018 to its previously filed registration statement on Form N-2 deemed effective by the Securities and Exchange Commission on December 17, 2018.
The Fund is a non-diversified, closed-end management company whose primary investment objective is to provide shareholders with above-market rates of return through capital appreciation and income by investing in a wide variety of financial instruments.
This document is not an offer to sell any securities, which can only be made by a final prospectus. Investors should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. Fund shares are subject to investment risk, including possible loss of principal invested. No Fund is a complete investment program and you may lose money investing in a Fund. An investment in the Fund may not be appropriate for all investors. There can be no assurance the objective of the Fund will be achieved, and past performance is not a guarantee of future results. Additional information about the Fund, including performance and portfolio characteristics, is available at https://horizonkinetics.com/investment-strategies/renn-fund-inc-nyse-rcg/.
Horizon Asset Management LLC is the investment adviser to the Fund. For additional information about Horizon, please visit us at www.horizonkinetics.com.