Herzfeld Credit Income Fund’s board voted to combine every ten outstanding shares of its $0.001 par value common stock into one share, effective at 5:00 pm Eastern on February 6, 2026. The Fund’s Nasdaq symbol remains HERZ, but a new CUSIP (42804T205) will apply following the consolidation. No fractional shares will be issued; holders entitled to fractions will receive one full share instead. Authorized shares remain capped at 100 million. The split preserves each investor’s percentage ownership, aside from minor adjustments due to the treatment of fractional entitlements.

The Fund’s investment manager, Thomas J. Herzfeld Advisors, recommended the reverse split to address the Fund’s diminished net asset value after required distributions under its managed distribution policy and dilution from its 2023 rights offering. By elevating the per‐share trading level, the Fund aims to attract a broader cohort of institutional buyers, reduce bid‐ask spreads, and lower trading costs. Manager commentary highlights that a higher share price may increase market interest and liquidity, though it does not change the Fund’s underlying assets or distribution policy.

As of the close of December 31, 2025, Herzfeld Credit Income Fund estimated its NAV at $2.14 per share, reflecting performance primarily driven by its diversified portfolio of collateralized loan obligations and other credit‐income investments. This figure provides a baseline for investors evaluating the post‐split per‐share value, which will be adjusted proportionately to a 10-to-1 split ratio. The Fund reiterated that closed-end structures often trade at a discount to NAV and stressed the importance of considering market risk and distribution policy when assessing total return potential.

Shareholders holding positions through banks, brokers or book‐entry will not need to take action; transfers will be handled automatically by Equiniti Trust Company, the Fund’s transfer agent. Certificate holders will receive a transmittal letter with instructions to surrender old certificates for new book‐entry shares. The Fund emphasized that the reverse split does not require an amendment to its charter’s authorized share count, and that all related communications and instructions will be available on the Fund’s and advisor’s websites and through direct mailings by the transfer agent.