RiverNorth Capital and Income Fund, Inc. Non-Transferable Rights Offering
By alexandreBusiness
RiverNorth Capital and Income Fund, Inc. Non-Transferable Rights Offering
RiverNorth Capital and Income Fund, Inc. recently announced a non-transferable rights offering to its shareholders. This offering allows existing shareholders to purchase additional shares of the fund at a discounted price. Non-transferable rights mean that only the existing shareholders can exercise these rights and they cannot be sold or transferred to others.
What is a Rights Offering?
A rights offering is a way for a company to raise capital by offering its existing shareholders the opportunity to purchase additional shares at a discounted price. This allows the company to raise funds without taking on debt or diluting the ownership of existing shareholders. It gives current shareholders the chance to maintain their proportional ownership in the company.
Details of RiverNorth Capital and Income Fund, Inc. Rights Offering
RiverNorth Capital and Income Fund, Inc. is offering non-transferable rights to its existing shareholders to purchase additional shares of the fund at a price below the current net asset value (NAV) per share. Shareholders will receive a specific number of rights based on their existing holdings, and they can use these rights to subscribe to new shares at the discounted price.
Benefits of Participating in the Rights Offering
Participating in the rights offering allows existing shareholders to increase their investment in the fund at a discounted price. This can potentially lead to higher returns in the future if the fund performs well. Additionally, it gives shareholders the opportunity to maintain their ownership percentage in the fund without being diluted by new investors.
How to Participate in the Rights Offering
To participate in the rights offering, shareholders need to follow the instructions provided by RiverNorth Capital and Income Fund, Inc. They will receive information on how many rights they are entitled to based on their current holdings and how to exercise those rights to purchase additional shares. It’s important for shareholders to carefully review the terms and conditions of the offering before making a decision.
Potential Risks of the Rights Offering
While participating in the rights offering can have benefits, there are also potential risks to consider. The value of the fund’s shares can fluctuate, and there is no guarantee that the fund will perform as expected. Additionally, investing more money in the fund could increase a shareholder’s exposure to market volatility.
The non-transferable rights offering by RiverNorth Capital and Income Fund, Inc. provides existing shareholders with the opportunity to increase their investment at a discounted price. By participating in the offering, shareholders can potentially enhance their returns and maintain their ownership percentage in the fund. However, it is important for shareholders to carefully evaluate the risks and benefits before deciding to participate.
