# EDGAR Filing Document

**Accession Number:** 0000880406
**File Stem:** 0001398344-25-011936
**Filing Date:** 2025-6
**Character Count:** 13191
**Document Hash:** 521c7046ec11702bf273f3426421dd53
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001398344-25-011936.hdr.sgml**: 20250618

**ACCESSION NUMBER**: 0001398344-25-011936

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20250618

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250618

**DATE AS OF CHANGE**: 20250618

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HERZFELD CARIBBEAN BASIN FUND INC
- **CENTRAL INDEX KEY:** 0000880406

**ORGANIZATION NAME:**
- **EIN:** 650396889
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 811-06445
- **FILM NUMBER:** 251057012

**BUSINESS ADDRESS:**
- **STREET 1:** 119 WASHINGTON AVENUE, SUITE 504
- **CITY:** MIAMI BEACH
- **STATE:** FL
- **ZIP:** 33139
- **BUSINESS PHONE:** 305-777-1660

**MAIL ADDRESS:**
- **STREET 1:** 119 WASHINGTON AVENUE, SUITE 504
- **CITY:** MIAMI BEACH
- **STATE:** FL
- **ZIP:** 33139

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FIRST CUBA FUND INC
- **DATE OF NAME CHANGE:** 19920929

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): <u>June 18, 2025</u>

<u>THE HERZFELD CARIBBEAN BASIN FUND, INC.</u>

(Exact name of registrant as specified in its charter

<u>Maryland</u> <u>811-06445</u> <u>65-0396889</u> <br> (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

<u>119 Washington Avenue, Suite 504, Miami Beach, FL</u> <u>33139</u> <br> (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code, <u>305-777-1660</u>

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<u>see</u> General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**SECTION 8 - OTHER EVENTS**

Item 8.01 Other Events.

On June 18, 2025, the Stockholders of the Herzfeld Caribbean Basin Fund, Inc. (the "Fund") approved the Fund's conversion from its current investment strategy to focus on a "CLO Equity Strategy". The approval was voted for at a Special Meeting of Stockholders held on June 17, 2025, with approximately 96% of the votes cast in favor of the changes.

With this change, the Fund's primary investment objective will change to a total return strategy with a secondary objective of generating high current income for stockholders. In accordance with the change in investment objective, the Fund will focus on investing in equity and junior debt tranches of collateralized loan obligations, or "CLOs". CLOs are portfolios of collateralized loans consisting primarily of below investment grade U.S. senior secured loans with a large number of distinct underlying borrowers across various industry sectors.

The three proposals approved by the Fund's Stockholders at the special meeting were:

&nbsp;&nbsp;&nbsp;&nbsp;· Proposal 1: approval of an amended and restated investment advisory agreement between the Fund and Thomas
J. Herzfeld Advisors, Inc. (the "Adviser") to permit the Adviser to receive a fee based on "managed assets" and
an incentive fee.

&nbsp;&nbsp;&nbsp;&nbsp;· Proposal 2: approval to revise the Fund's investment objective from obtaining "long term capital appreciation" to
a primary objective of "maximizing risk adjusted total returns" with a secondary objective of "generating high current
income;" and to reclassify the Fund's investment objective as non-fundamental.

&nbsp;&nbsp;&nbsp;&nbsp;· Proposal 3: approval to amend the fundamental policies of the Fund related to borrowing, the issuance of senior securities, underwriting
securities issued by other persons, industry concentration, the purchase or sale of real estate, the purchase or sale of commodities,
and making loans to other persons.

The changes approved by the Fund's Stockholders will go into effect July 1, 2025.. A copy of the press release issued by the Fund dated June 18, 2025 is attached hereto as Exhibit 99.1

**SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS**

Item 9.01 Financial Statements and Exhibits

[(d)](fp0094000-1_ex991.htm) [Exhibit 99.1 Press release dated June 18, 2025 announcing the results of Special Meeting of Stockholders; Approval of Conversion of Fund to CLO Equity Strategy.](fp0094000-1_ex991.htm)

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
|  | HERZFELD CARIBBEAN BASIN FUND, INC. |
| Date: June 18, 2025 | /s/ Thomas Morgan |
|  | Thomas Morgan |
|  | Chief Compliance Officer |

---

**EXHIBIT INDEX**

<u>Exhibit Number</u> <u>Exhibit Description</u> <br> [99.1](fp0094000-1_ex991.htm) [Press release dated June 18, 2025 announcing the results of Special Meeting of Stockholders; Approval of Conversion of Fund to CLO Equity Strategy.](fp0094000-1_ex991.htm)

## Exhibit 99.1

**The Herzfeld Caribbean Basin Fund, Inc.**

**Announces Results of Special Meeting of Stockholders; Approval of Conversion of Fund to**

**CLO Equity Strategy**

MIAMI BEACH, FLA., June 18 2025 –The Herzfeld Caribbean Basin Fund, Inc. (NASDAQ: CUBA) (the "Fund") today announced that the Fund's Stockholders have approved the Fund's conversion from its current investment strategy to focus on a "CLO Equity Strategy". The approval was voted for at a Special Meeting of Stockholders held on June 17, 2025, with approximately 96% of the votes cast in favor of the changes.

With this change, the Fund's primary investment objective will change to a total return strategy with a secondary objective of generating high current income for stockholders. In accordance with the change in investment objective, the Fund will focus on investing in equity and junior debt tranches of collateralized loan obligations, or "CLOs". CLOs are portfolios of collateralized loans consisting primarily of below investment grade U.S. senior secured loans with a large number of distinct underlying borrowers across various industry sectors.

The three proposals approved by the Fund's stockholders at the special meeting were:

&nbsp;&nbsp;&nbsp;&nbsp;· Proposal
 1: approval of an amended and restated investment advisory agreement between the Fund and
 Thomas J. Herzfeld Advisors, Inc. (the "Adviser") to permit the Adviser to receive
 a fee based on "managed assets" and an incentive fee.

&nbsp;&nbsp;&nbsp;&nbsp;· Proposal
 2: approval to revise the Fund's investment objective from obtaining "long term
 capital appreciation" to a primary objective of "maximizing risk adjusted total
 returns" with a secondary objective of "generating high current income;"
 and to reclassify the Fund's investment objective as non-fundamental.

&nbsp;&nbsp;&nbsp;&nbsp;· Proposal
 3: approval to amend the fundamental policies of the Fund related to borrowing, the issuance
 of senior securities, underwriting securities issued by other persons, industry concentration,
 the purchase or sale of real estate, the purchase or sale of commodities, and making loans
 to other persons.

The changes approved by the Fund's Stockholders will go into effect July 1, 2025.

Cecilia Gondor, Chairperson of the Fund's Board of Directors commented: "This marks an important day in the long history of our Fund and the beginning of what we hope is a bright future for our Fund investors. I want to thank my fellow board members and our Chairman Emeritus, Tom Herzfeld, for the hard work that was undertaken in managing this transition."

**About Thomas J. Herzfeld Advisors, Inc.**

Thomas J. Herzfeld Advisors, Inc., founded in 1984, is an SEC registered investment advisor, specializing in investment analysis and account management in closed-end funds.

More information about the advisor can be found at www.herzfeld.com.

*Past performance is no guarantee of future performance. An investment in the Fund is subject to certain risks, including market risk. In general, shares of closed-end funds often trade at a discount from their net asset value and at the time of sale may be trading on the exchange at a price which is more or less than the original purchase price or the net asset value. An investor should carefully consider the Fund's investment objective, risks, charges and expenses. Please read the Fund's disclosure documents before investing.*

 

***Forward-Looking Statements***

 ****

*This press release, and other statements that TJHA or the Fund may make, may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the Fund's or TJHA's future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as "trend," "potential," "opportunity," "pipeline," "believe," "comfortable," "expect," "anticipate," "current," "intention," "estimate," "position," "assume," "outlook," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions. TJHA and the Fund caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and TJHA and the Fund assume no duty to and do not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance. With respect to the Fund, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, particularly with respect to Cuba and other Caribbean Basin countries, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Fund or in the Fund's net asset value; (2) the relative and absolute investment performance of the Fund and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to the Fund or TJHA, as applicable; (8) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or TJHA or the Fund; (9) TJHA's and the Fund's ability to attract and retain highly talented professionals; (10) the impact of TJHA electing to provide support to its products from time to time; (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions; and (12) the effects of an epidemic, pandemic or public health emergency, including without limitation, COVID-19. Annual and Semi-Annual Reports and other regulatory filings of the Fund with the SEC are accessible on the SEC's website at www.sec.gov and on TJHA's website at www.herzfeld.com/cuba, and may discuss these or other factors that affect the Fund. The information contained on TJHA's website is not a part of this press release.*

 

*TJHA has received certain nominations or awards by third-parties as reflected herein. Investors should review the criteria for each nomination or award as reflected on the third-party's webpage. In addition, the nominations and awards reflect past performance of the nominee or award designee and may not reflect the current performance or status of any such firm or individual and may no longer be applicable. Morningstar award content presented with permission and licensing fee. Contact us for more information on how the ratings are apportioned and for full disclosures regarding third party news and awards.*

 

Contact:<br> Thomas Morgan<br> Chief Compliance Officer<br> The Herzfeld Caribbean Basin Fund, Inc.<br> 1-305-777-1660