Central Fund Enters Into a US$350 Million Underwriting Agreement
11 Mayo 2010 - 8:28AM
Marketwired
Central Fund of Canada Limited ("Central Fund") (TSX: CEF.A)(TSX:
CEF.U)(NYSE Amex: CEF) of Calgary, Alberta announced today that it
has entered into an underwriting agreement with CIBC World Markets
Inc., as lead underwriter, and Credit Suisse Securities (Canada)
Inc. (the "Underwriters"), under which the Underwriters have agreed
to buy and sell to the public, in Canada (except Quebec) and in the
United States under the multijurisdictional disclosure system,
23,600,000 Class A Shares of Central Fund. The Underwriters have
been granted the right to increase the size of the offering (the
"Right") by up to an additional 1,700,000 Class A Shares,
exercisable in whole or in part, at any point prior to 4:00 pm
(EST) on May 11, 2010. The offering will be made under a second
prospectus supplement to Central Fund's U.S.$1,000,000,000 base
shelf prospectus dated September 8, 2009.
The purchase price of U.S.$14.85 per Class A Share is expected
to result in gross proceeds of approximately U.S.$350 million.
Substantially all the net proceeds of the offering have been
committed to purchase gold and silver bullion for settlement at
closing, in keeping with the asset allocation policies established
by the Board of Directors of Central Fund. Any additional capital
raised by this offering is expected to assist in reducing the
annual expense ratio in favour of the Shareholders of Central
Fund.
Closing is expected to occur on or about May 18, 2010.
Central Fund has filed a base shelf prospectus and registration
statement with the Canadian securities regulatory authorities
(except Quebec) and the United States Securities and Exchange
Commission ("SEC") for the offering to which this communication
relates. Before you invest, you should read the base shelf
prospectus and prospectus supplement and any other documents
Central Fund has filed with the securities commissions in each of
the provinces and territories of Canada, except Quebec, and the SEC
for more complete information about Central Fund and this offering.
You may obtain a copy of the base shelf prospectus and prospectus
supplement filed in the United States from CIBC World Markets
Corp., 425 Lexington Avenue, 5th Floor, New York, New York 10017,
by fax at 212-667-6303 or by e-mail at useprospectus@us.cibc.com.
You may obtain a copy of the base shelf prospectus and prospectus
supplement filed in Canada from CIBC, fax 416-594-7242 or request a
copy by telephone at 416-594-7270.
Statements contained in this release that are not historical
facts are forward-looking statements that involve risks and
uncertainties. Central Fund's actual results could differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause or contribute to such
differences include, but are not limited to, those risks detailed
in Central Fund's filings with the Canadian securities regulatory
authorities and the SEC.
Central Fund of Canada Limited (est. 1961) is an
exchange-tradeable, refined gold and silver bullion holding
company. Class A Shares are qualified for inclusion in many North
American regulated accounts. Central Fund's bullion holdings are
stored unencumbered in allocated and segregated safekeeping in
Canada, in the treasury vaults of the Canadian Imperial Bank of
Commerce. The gold and silver bullion are physically inspected by
Ernst & Young LLP in the presence of Central Fund's Directors
and Officers as well as bank officials. Class A Shares are quoted
on the NYSE Amex Equities, symbol CEF and on the TSX, symbols CEF.A
(Cdn. $) and CEF.U (U.S. $).
Contacts: Central Fund of Canada Limited J.C. Stefan Spicer
President and CEO 905-648-7878 info@centralfund.com
www.centralfund.com
Sprott Physical Gold and... (AMEX:CEF)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Sprott Physical Gold and... (AMEX:CEF)
Gráfica de Acción Histórica
De May 2023 a May 2024