Gabelli Multimedia Trust Announces ATM Offering of Common Stock

Published 22/04/2025, 21:30
Gabelli Multimedia Trust Announces ATM Offering of Common Stock

The Gabelli Multimedia Trust Inc. (NYSE:GGT) ("the Fund"), currently valued at $155.45 million with a notable dividend yield of 21.67%, has entered into a sales agreement with G.research, LLC, initiating an "at the market" offering of up to 5 million shares of common stock. The arrangement, effective as of April 16, 2025, allows the Fund to sell shares from time to time, with the minimum sale price set above the current net asset value per share, inclusive of the commission to be paid to the distributor. According to InvestingPro data, the Fund trades at a P/E ratio of 12.54, suggesting moderate valuation levels.

This offering is part of a shelf registration statement previously filed with the Securities and Exchange Commission (SEC) and is accompanied by a prospectus supplement dated April 17, 2025, and a base prospectus dated April 19, 2024. The Fund commenced the offering on Monday, April 21, 2025.

The Fund’s decision to enter into this agreement aligns with its strategy to raise capital efficiently. The proceeds from the sale of common stock are expected to be used for general corporate purposes, which may include investment in securities in accordance with the Fund’s investment objectives and policies, and for working capital.

The legal opinion regarding the common stock’s legality has been provided by Venable LLP and is included in the SEC filing as an exhibit. This opinion is a customary document for such transactions, ensuring that the securities being offered are legally permitted to be sold.

Investors interested in the Gabelli Multimedia Trust’s common stock should refer to the prospectus supplement and accompanying prospectus for more details on the terms of the offering. The sales agreement and legal opinion are available as exhibits to the Fund’s SEC filings, which provide additional context for the offering.

This report is based on an SEC filing and does not constitute an endorsement or recommendation of the Fund’s common stock. Investors should consider their individual circumstances and consult with their financial advisors before making investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.