Cornerstone Strategic Value Fund, Inc. (AMEX:CLM) and Cornerstone Total Return Fund, Inc. (AMEX:CRF), (individually the "Fund" or, collectively, the "Funds"), each a closed-end management investment company, announced that the Board of Directors of each Fund has determined that it is in the best interests of each Fund and its stockholders to adopt an amendment to CLM's Articles of Incorporation and CRF's Certificate of Incorporation (the "Amendments") to effect a Reverse Stock Split of each of the Fund's common stock (1:4 for CLM and 1:2 for CRF). A Special Meeting of Stockholders for each Fund will be held on October 15, 2008, at 11:00 a.m. for CRF and at 11:30 a.m. for CLM. It is anticipated that, upon receiving the requisite shareholder approval, each of the Amendments will, subject to the discretion of each Board, be filed with the appropriate authorities and that each proposed Reverse Stock Split will become effective in December, 2008.
Subject to approval by each Fund's stockholders, as of the date that a Fund implements a Reverse Stock Split, the number of shares of common stock held by each stockholder would be reduced by dividing the number of shares held immediately before the Reverse Stock Split by the exchange ratio (1:4 for CLM and 1:2 for CRF). It is each Board's intention to continue the previously announced distribution policy, therefore, any distributions that have been declared prior to the Reverse Stock Split for record dates occurring after the Reverse Stock Split will be increased accordingly.
Additional information is contained in proxy documents pertaining to each Special Meeting of Stockholders. Stockholders are urged to review these proxy documents that have been sent to all stockholders of record as of August 18, 2008.
Cornerstone Strategic Value Fund, Inc. and Cornerstone Total Return Fund, Inc. are traded on the American Stock Exchange LLC under the trading symbols "CLM" and "CRF", respectively. Each Fund's investment adviser is Cornerstone Advisors, Inc.
Past performance is no guarantee of future performance. An investment in a Fund is subject to certain risks, including market risk. In general, shares of closed-end funds often trade at a discount from their net asset value and at the time of sale may be trading on the exchange at a price that is more or less than the original purchase price or the net asset value. An investor should carefully consider a Fund's investment objective, risks, charges and expenses. Please read a Fund's disclosure documents before investing.