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X-Square Alternative Dividend Alpha Fund

X2 Alternative Dividend Alpha Fund, Inc. (the “Fund”) is a non-diversified, open-end management investment company registered under the Puerto Rico Investment Companies Act of 1954, as amended (the “PR Investment Companies Act”). The Fund has been offering shares of its common stock on a continuous basis since June of 2013. The Fund’s investment objective is to provide you with a high level of current income. There can be no assurance that the Fund’s investment objective will be achieved or that the Fund’s investment program will be successful. The Fund will seek to achieve its investment objective by investing its assets in income-generating debt and equity securities, including corporate and municipal bonds, government securities, mortgage backed securities, preferred stock, common stock, foreign securities, and commodity-related securities. The Shares are being offered exclusively to qualified purchasers who have their principal residence in Puerto Rico and to corporations and other business organizations whose principal office and principal place of business are in Puerto Rico. The Fund intends to distribute semiannual dividends of substantially all its net investment income. The net capital gains realized by the Fund, if any, may be retained by the Fund, as permitted by Puerto Rico law, to the extent that such gains are offset by operating expenses of the Fund that are deductible for Puerto Rico income tax purposes. The Fund has established a dividend reinvestment plan under which all dividends and distributions are automatically reinvested in additional Shares of the same class at the net asset value per share as of the respective dividend payment date unless the Shareholder elects to receive them in cash. There is no upfront charge for the reinvestment of dividends or other distributions pursuant to the dividend reinvestment plan.

Because a significant portion of the Fund’s investments may be in Puerto Rico, the Fund may be susceptible to economic and political developments affecting Puerto Rico, including its current economic and fiscal crisis.

X-Square seeks to extract returns through this multi-strategy fund with the investment objective of providing a high level of current income. The Fund is currently offered exclusively to Puerto Rico residents who are qualified purchasers. For more information regarding the Fund please contact your financial advisor at either of the following institutions: Popular Securities, Oriental Financial Services, HJ Sims and First Southern, LLC.