CION Investment Corporation Reduces Sales Load
CĪON Investment Corporation, a non-traded business development company, reduced the sales load of its follow-on continuous public offering of common stock from 10 percent to 5 percent, according to a filing with the Securities and Exchange Commission.
Under the company’s amended dealer manager agreement, the dealer manager fee was reduced from 3 percent to 2 percent, and selling commissions were reduced from 7 percent to 3 percent.
CĪON Securities, the company’s dealer manager, may allow certain broker-dealers to reimburse 1 percent of its dealer manager fee for marketing expenses. The amount of the reallowance will be based on the number of shares sold by the selected broker-dealer, the assistance of the broker-dealer in marketing the offering and due diligence expenses incurred.
As a result of the decrease in selling commissions and the dealer-manager fee, CĪON adjusted its public offering price from $10.10 per share to $9.57 per share, in order to maintain its net offering price of $9.09 per share.
The company said that it will maintain the amount of weekly cash distributions payable to shareholders of $0.014067 per share resulting in an annual distribution of 7.65 percent, based on the $9.57 per share public offering price.
The reduction became effective on CĪON’s January 4, 2017 weekly closing and will be first applied to subscriptions received from December 28, 2016 through January 3, 2017.
CĪON Investment Corporation’s initial continuous public offering commenced in July 2012, and through January 2, 2017, has accepted subscriptions for approximately 100.5 million shares of common stock at an average price per share of $10.28, for total proceeds of approximately $1.03 billion.
