Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 16

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 16
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, the 2013 Offering, the 2016 Offering, the 2017 Offering, the 2018 Offering, the 2021 Offering,
and the 2022 Offering (collectively, the “Prior Rights Offerings”) and that the Prior Rights Offerings were anti-dilutive
to Stockholders with respect to value, the ability of the Investment Adviser to invest the proceeds of the Offering, the Fund’s
assets, including those resulting from Prior Rights Offerings, have been used to maintain the Fund’s Distribution Policy because
a portion of the assets raised in the rights offering may be utilized to maintain monthly distributions and the potential effect of the
Offering on the Fund’s stock price and adherence to the terms of the Fund’s exemptive relief, which restricts a public offering
of its common stock. The Board considered that, during the course of each of the Prior Rights Offerings, the Fund’s market price
declined, however the Board noted that the Fund continued at all times during the 2022 Offering and all of the time since the 2022 Offering’s
conclusion to sell at a premium to NAV, and the current market price, after adjusting for distributions, exceeded the level that it was
prior to the 2021 Offering. When considering the potential effect of the Offering on the Fund’s stock price, the Board took into
account the 2022 Offering, including the positive impact it had on the Fund’s net asset value per share and the short-term price
effect. The Board concluded that the impact on the Fund’s price was uncertain and, regardless of the potential impact, the Offering
was in the best interests of the Stockholders. As a result of these considerations, the Board determined that it was appropriate and
in the best interest of the Fund and its Stockholders to proceed with the Offering, while continuing with the Distribution Policy.

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At a meeting held on February 21, 2025, the Board
voted to approve the terms of the Offering. Three of the Fund’s Directors who voted to authorize the Offering are affiliated
with the Investment Adviser and, therefore, could benefit indirectly from the Offering. The remaining directors are not “interested
persons” of the Fund within the meaning of the 1940 Act. The Investment Adviser may also benefit from the Offering because its
fee is based on the assets of the Fund. It is not possible to state precisely the amount of additional compensation the Investment Adviser
might receive as a