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.
Any Offering will be made only by means of a prospectus and this notice
does not constitute an offer to sell, or a solicitation of an offer to
buy, any of the Fund’s securities. The rights are expected to be
transferable and the Fund intends to apply for a New York Stock Exchange
listing for the rights. The information in this announcement is not
complete and is subject to change. This document is not an offering,
which can only be made by a final prospectus. Investors should
consider the Fund’s investment objectives, risks, charges and expenses
carefully before investing. The base prospectus contains this and
additional information about the Fund and the prospectus supplement will
contain this and additional information about the Offering, and should
be read carefully before investing.
The Gabelli Multimedia Trust Inc. is a non-diversified, closed-end
management investment company with $228 million in total net assets
whose primary investment objective is long-term growth of capital. The
Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors,
Inc. (NYSE:GBL), which is a publicly traded NYSE listed company.
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