Central Fund of Canada Limited Enters into Underwriting Agreement
27 Janeiro 2009 - 12:15PM
Marketwired
Central Fund of Canada Limited ("Central Fund")(TSX: CEF.A)(TSX:
CEF.U)(NYSE Alternext US: CEF) of Calgary, Alberta announced today
that it has entered into an underwriting agreement with CIBC World
Markets Inc., as underwriter, under which the underwriter has
agreed to buy and sell to the public, in Canada (except Quebec) and
in the United States under the multijurisdictional disclosure
system, 11,540,000 Class A Shares of Central Fund. The Underwriter
has been granted the right to increase the size of the offering
(the "Right") by up to an additional 960,000 Class A Shares,
exercisable in whole or in part, at any point prior to 4:00pm (EST)
on January 27, 2009. The offering will be made under a third
prospectus supplement to Central Fund's U.S.$750,000,000 base shelf
prospectus dated March 31, 2008.
The purchase price of U.S.$10.40 per Class A Share is expected
to result in gross proceeds of approximately U.S.$120 million,
prior to the exercise of the Right. 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. The additional capital raised by the 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 February 3, 2009.
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
supplements 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 supplements 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 supplements filed in Canada
from CIBC World Markets Inc., 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 on an unencumbered, allocated, segregated and insured basis
in the treasury vaults of a major Canadian bank and are audited
semi-annually in the presence of Central Fund's auditors and bank
representatives. Class A Shares are quoted on the NYSE Alternext
US, symbol CEF and 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 Email: info@centralfund.com
Website: www.centralfund.com
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