At a special meeting of shareholders held on November 6, 2019, shareholders of Comstock Capital Value Fund (the “Fund”) approved proposals that included a change in the nature of the Fund’s business to cease to be an investment company under the Investment Company Act of 1940, as amended and de-register as a registered investment company with the Securities and Exchange Commission (the “SEC”). After shareholders approved the Plan, the Fund converted its holdings to cash and cash equivalents, and will solely maintain its cash and cash equivalent positions until it receives the order of de-registration from the SEC, which has been reviewing the proposed transaction since December 2019.
Once the SEC issues the de-registration order, the Fund will complete the reorganization into a new operating company, New Comstock, Inc. (“New Comstock”), which will be an acquisition vehicle. The Organizational Documents for New Comstock will restrict any person from attempting to purchase or otherwise acquire (an “Acquisition”), without the Board’s prior approval, any direct or indirect interest in the shares, if the new Acquisitions would either (1) cause the person to own (within the meaning of Section 382) more than 4.9% of the shares (any such person being referred to as a “Restricted Holder,” and such shares greater than 4.9% being referred to as “Excess Shares”) or (2) increase the percentage of the shares a Restricted Holder owns.
The Fund has 292 direct shareholders, and thanks Henry G. Van der Eb and Charles L. Minter, who have resigned from the Board, for their service. Anthony S. Colavita, Vincent D. Enright, and Werner J. Roeder will continue to serve in their capacities as Directors, and have agreed to serve without receiving fees.
The Comstock Capital Value Fund is managed by Gabelli Funds, LLC and distributed by G.distributors, LLC, subsidiaries of GAMCO Investors, Inc. (NYSE: GBL).
Investors should carefully consider the investment objectives, risks, sales charges, and expenses of the Fund. The prospectus and summary prospectus contain information about these and other matters and should be read carefully. To obtain a prospectus or summary prospectus, please visit our website at www.gabelli.com or call 800-GABELLI (800-422-3554).
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