The Herzfeld Caribbean Basin Fund, Inc. Celebrates 30th Anniversary of Listing on NASDAQ and Extends Managed Distribution Policy, Self-Tender Policy and Management Fee Waiver

MIAMI BEACH, FLA., May 20, 2024 (GLOBE NEWSWIRE) -- The Herzfeld Caribbean Basin Fund, Inc. (NASDAQ: CUBA) (the “Fund”) is pleased to announce that May 20, 2024 marks 30 years since the Fund’s common stock commenced trading on the NASDAQ Capital Market. The original date of May 20th was selected to honor Cuban Independence Day and to emphasize the importance of Cuba to the economic future of the Caribbean Basin. The Fund was launched through a continuous offering which began in 1993 and closed in the first quarter of 1994. Trading was then delayed until May 20, 1994.

Thomas J. Herzfeld, Founder and Chairman of the Board of Directors of the Fund, stated: “I believed then and even more now that there is enormous potential for investment in Cuba once the U.S. trade embargo with that country is lifted. We continue to manage the Fund strategically with that view. Furthermore, my expectation is that an economic boom in Cuba will have a positive impact throughout the countries of the Caribbean Basin.”

The Fund also announced the extension of its Managed Distribution Plan (the “Plan”) to June 30, 2025, with certain modifications discussed below. The Plan has the following two components:

Managed Distribution Policy

Under the Plan, the Fund’s Managed Distribution Policy (“MDP”) will be extended to June 30, 2025.

The primary purpose of the MDP is to provide stockholders with a constant, but not guaranteed, fixed minimum rate of distribution. The MDP as originally adopted set quarterly distributions at an annual rate of 15% of the Fund’s NAV as determined on a date determined by the Fund’s Board of Directors. The Board recently amended the policy to maintain the 15% annual rate of distribution, but at quarterly, semi-annual or annual periods of distribution to be reviewed by the Board each quarter. The purpose of the modification is to allow the Fund to maintain its 15% annual distribution of NAV, but provide flexibility in determining the timing of those distributions in order to account for required year-end regulatory distributions of capital gains necessary to maintain the Fund’s tax-free status. The Fund has capital gains as of May 15, 2024 of approximately $3.6 million.