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The Board of Directors of The Gabelli Multimedia Trust (NYSE:GGT) (the “Fund”) has approved a transferable rights offering which would allow the Fund’s record date common shareholders to acquire additional shares of common stock (the “Offering”). Key aspects of the Offering, including the timing and the pricing, will be announced at a later date. The Board reserves the right to delay or cancel the Offering.
The proceeds from the Offering (if commenced) would allow the Fund to take advantage of new investment opportunities without having to reduce existing holdings. Increasing the assets of the Fund may also result in certain economies of scale which may lower the Fund’s fixed expenses as a percentage of average net assets. It is anticipated that the rights will be transferable and listed on an exchange which would allow non-subscribing shareholders the option of selling their rights on the exchange or through the transfer agent, generally at a low transaction cost.
Under the proposed Offering, each shareholder would receive one right for each share of common stock held on the record date. It is anticipated that at least three rights will be required to acquire one additional share of the Fund’s common stock. The subscription price will be determined at a later time and is expected to be below the Fund’s market price at that time. Shareholders of record on the record date for the Offering are expected to be entitled to oversubscribe, subject to certain limitations, for any shares not purchased pursuant to the primary subscription rights. The record date for the Offering and the length of the Offering period will also be announced at a later time.
Any common stock issued as a result of the Offering will not be record date shares for the Fund’s quarterly distribution to be paid on June 23, 2014, and will not be entitled to receive such distribution.