RYE, NY – (COMMERCIAL THREAD) – After careful consideration, the board of directors (the “Board”) of the Comstock Capital Value Fund (the “Fund”) has approved the convening of an extraordinary meeting of shareholders, to be held as soon as possible, to consider a proposal to change the nature of the Fund’s activities from a mutual fund registered under the Investment Companies Act 1940, as amended (the “1940 Act”) to a mutual fund corporation operation, and to delist the Fund as a registered investment company (“RIC”) with the Securities and Exchange Commission (the “Proposal”). In addition, if shareholders approve the proposal, it is expected that the Fund will no longer be treated as an RIC under the United States Internal Revenue Code of 1986 and, instead, will be taxed as a “C” corporation. “.
This conclusion was based in large part on the Board’s belief that the appropriate business strategy to be pursued by the Fund would be to become an operating company which owns a stake in one or more operating companies and / or to acquire assets. other than securities, and try to maximize the use of accumulated capital loss carryforwards. If the shareholders of the Fund approve the proposal, the conversion to an operating company is currently expected to take effect in the second quarter of 2019.
Shareholders of the Fund will receive a combined proxy containing additional information about the shareholders meeting and the Proposal. Shareholders should read the proxy documents carefully, as they will contain a more detailed description of the proposal.
The price of the shares of the Fund will fluctuate according to changes in the market value of the securities in the Fund’s portfolio. Shares are subject to market, economic and commercial risks which cause their prices to fluctuate. When you sell shares of the Fund, they may be worth less than what you paid for them. Therefore, you can lose money by investing in the Fund.
Gabelli mutual funds are distributed by G.distributors, LLC. a registered broker and member of FINRA.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. The prospectus, which contains more comprehensive information on these and other topics, should be read carefully before investing. To obtain a prospectus, please call 800-GABELLI or visit www.gabelli.com.