Company: CLM
Filing Date: 2025-04-21
Form Type: 424B3
Source: 0001398344-25-007380
Chunk: 25

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-21
Form: 424B3
Chunk 25
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the tax on unrelated business taxable income (“UBTI”) under Section 511 of the Code. If any portion of an IRA is used as
security for a loan, the portion so used is also treated as distributed to the IRA depositor.

ERISA contains prudence and diversification requirements
and ERISA and the Code contain prohibited transaction rules that may impact the exercise of Rights. Among the prohibited transaction
exemptions issued by the Department of Labor that may exempt a Benefit Plan’s exercise of Rights are Prohibited Transaction Exemption
84-24 (governing purchases of shares in investment companies) and Prohibited Transaction Exemption 75-1 (covering sales of securities).

Due to the complexity of these rules and the penalties
for noncompliance, Benefit Plans should consult with their counsel regarding the consequences of their exercise of Rights under ERISA
and the Code.

Benefit to the Investment Adviser.
The Investment Adviser will benefit from the Offering because its fees are based on the average total net assets of the Fund. It is not
possible to state precisely the amount of additional compensation the Investment Adviser will receive as a result of the Offering because
the proceeds of the Offering will be invested in additional portfolio securities that will fluctuate in value. However, based on the
Estimated Subscription Price of $6.61: (i) if all Rights are exercised in the Basic Subscription, the annual compensation to be received
by the Investment Adviser would be increased by approximately $5,569,079 and (ii) if all Rights are exercised in the Basic Subscription
and the Fund issues all of the Over-Subscription Shares, the annual compensation to be received by the Investment Adviser would be increased
by approximately $11,138,158. Three of the Fund’s Directors who voted to approve the Offering are “interested persons”
of the Investment Adviser within the meaning of the 1940 Act. These Directors, Messrs. Daniel Bradshaw, Joshua Bradshaw, and Ralph Bradshaw,
could benefit indirectly from the Offering because of their beneficial interests in the Investment Adviser. The other Directors were
aware of the potential benefit to the Investment Adviser (and indirectly to Messrs. Daniel Bradshaw, Joshua Bradshaw, and Ralph Bradshaw),
but nevertheless concluded that the Offering was in the best interest of the Fund’s Stockholders.

The Fund may, in the future and at its discretion,
choose to make additional rights offerings from time to time for a number of Shares and on terms which may or