Coronavirus Update

City of Lon Investment Group - Proposed Share Issue

This content has been sourced from: https://www.investegate.co.uk/city-of-lon-inv-grp/...

CITY OF LONDON INVESTMENT GROUP PLC

("CLIG", the "Group" or the "Company")

Proposed Share issue  in respect of all Share Merger of CLIG with Karpus Management Inc. ("KMI")

As announced on 9 June 2020, the consideration due under the proposed merger (the " Merger " ) of CLIG with Karpus Management Inc ( " KMI " ), is to be satisfied through the issue of new shares in the capital of the Company ("New Shares"). As the aggregate assets under management of KMI's clients who have consented to the Merger is greater than US$3.0595 billion as at 28 September 2020, KMI Stockholders will receive, on the terms and subject to the conditions of the Merger Agreement, the maximum share consideration of 79.18 New Shares for every KMI Share, with any fractional entitlement to New Shares forfeited by the KMI Stockholders. Accordingly, after adjustment in respect of fractional entitlements, a total of 24,118,388 New Shares will be issued to KMI Stockholders.

Application has been made for the New Shares to be listed on the premium segment of the Official List and to be admitted to trading on the premium segment of the main market of the LSE, in each case upon Completion, which is expected to be on 1 October 2020.

Immediately following Admission of the New Shares, the Enlarged Share Capital will be 50,679,095 Shares and on this basis, the New Shares will represent approximately 47.6% per cent. of the Enlarged Share Capital.