Monday, January 27, 2014

"Special Opportunities Fund, Inc. Announces Redemption of Convertible Preferred Stock"

Press release:

Special Opportunities Fund, Inc. (SPE) (the “Fund”) today announced that the Fund’s Board of Directors (the “Board”) has determined to redeem all outstanding shares of the Fund’s Convertible Preferred Stock on March 3, 2014 at $50 per share. In accordance with the prospectus for the Fund’s Convertible Preferred Stock, no accrued interest will be paid.

Holders of the Fund’s Convertible Preferred Stock may, until 5 pm EST on February 28, 2014, convert their shares into shares of Common Stock at a ratio of 3.7160 common shares for each share of Convertible Preferred Stock (with cash in lieu of any fractional shares of common stock). Holders of shares of Convertible Preferred Stock that do not elect to convert by 5 pm EST on February 28, 2014 will receive $50 in cash per share. Currently, the market price of the Convertible Preferred Stock is significantly higher than $50 per share. Therefore, holders of the Fund’s Convertible Preferred Stock are advised to check the market price of both the Common Stock and the Convertible Preferred Stock before determining whether to convert their shares into common stock.


Anonymous said...

what do you think would happen to fractional shares during the conversion?

Anonymous said...

I don't understand why the stock is so much.

Read the prospectus for the preferred stock..