4/A: Herzfeld Caribbean Basin Fund President Disposes of Shares in Tender Offer

Erik Mervin Herzfeld, President and Portfolio Manager of Herzfeld Caribbean Basin Fund, reports the disposition of 64,131 common stock shares due to a tender offer.

Summary

• Erik Mervin Herzfeld, President and Portfolio Manager of Herzfeld Caribbean Basin Fund Inc. (CUBA), filed an amendment to his Form 4 on March 26, 2024.
• The amendment reports a transaction that occurred on March 19, 2024.
• Herzfeld disposed of 64,131 shares of common stock at a price of $3.3833 per share.
• This disposal was due to shares tendered in connection with the issuer tender offer by the Fund, as detailed in the Tender Offer Statement on Schedule TO filed on February 20, 2024.
• Following the transaction, Herzfeld beneficially owns 406,881 shares of common stock.
• The final proration factor for the Tender Offer is 13.615645%.

Sentiment

Score: 5

Explanation: Neutral sentiment as it reports a transaction related to a previously announced tender offer. The insider selling is part of a planned corporate action.

Industry Context

This filing reflects insider activity related to a specific tender offer by a closed-end fund focused on the Caribbean Basin. Tender offers are often used by closed-end funds to manage their share count and potentially reduce discounts to net asset value. Insider participation in tender offers is common, but the extent of participation can be viewed as a signal of management's confidence in the fund's future prospects.

Stakeholder Impact

• Shareholders who participated in the tender offer had their shares repurchased by the fund.
• The tender offer may impact the fund's net asset value per share and discount to NAV.

Key Dates