Central Fund Increases Equity Offering to U.S.$376 Million as Underwriters Exercise Their Right to Purchase Additional Class A S
11 Mai 2010 - 5:35PM
Marketwired
Central Fund of Canada Limited ("Central Fund") (TSX: CEF.A)(TSX:
CEF.U)(NYSE Amex: CEF) is pleased to announce that a syndicate of
underwriters (the "Underwriters") led by CIBC have exercised their
right to purchase an additional 1,700,000 Class A Shares at a price
of U.S.$14.85 per Class A Share, for additional gross proceeds of
approximately U.S.$25 million to Central Fund. The Underwriters
agreed earlier this morning to purchase 23,600,000 Class A Shares
for gross proceeds of approximately U.S.$350 million.
The purchase price of U.S.$14.85 per Class A Share is
non-dilutive and accretive for the existing Shareholders of Central
Fund. The additional net proceeds 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. This offering is expected to assist in reducing
the annual expense ratio in favour of the Shareholders of Central
Fund.
Central Fund has filed a base shelf prospectus and registration
statement with the Canadian securities regulatory authorities 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 is 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
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