Central Fund Closes U.S.$150,052,500 Class A Share Issue
July 22 2008 - 9:02AM
Marketwired
TORONTO, ONTARIO (TSX: CEF.A)(TSX: CEF.U)(AMEX: CEF) of Calgary,
Alberta is pleased to announce that it has completed the sale of
11,115,000 Class A Shares of Central Fund at a price of U.S.$13.50
to CIBC World Markets Inc. (the "Underwriter"), raising total gross
proceeds of U.S.$150,052,500.00. The Class A Shares offered were
primarily sold to investors in Canada and in the United States
under the multijurisdictional disclosure system.
The underwritten price of U.S.$13.50 per Class A Share was
non-dilutive and accretive for the existing shareholders of Central
Fund. In keeping with the policies established by the board of
directors of Central Fund, Central Fund has invested substantially
all of the net proceeds of the issue (after deducting fees payable
to the Underwriter and expenses of the issue) in gold and silver
bullion, with the balance of the net proceeds reserved for
additional bullion purchases and working capital purposes. It is
anticipated that the additional capital raised by the issue will
assist Central Fund's objective of reducing the annual expense
ratio in favour of all shareholders of Central Fund.
The new total of issued and outstanding Class A Shares of
Central Fund is 140,567,713. The investment holdings of Central
Fund are now represented by approximately 897,982 fine ounces of
gold, 44,893,456 ounces of silver and U.S.$38,385,618 in cash.
The Class A Shares of Central Fund are qualified investments for
RRSPs, DPSPs, RRIFs, RESPs and RDSPs. The Class A Shares are also
eligible investments in the United States for various regulated
investors and accounts.
Central Fund has filed a prospectus supplement to the base shelf
prospectus and registration statement dated March 31, 2008 with the
Canadian securities regulatory authorities and the United States
Securities and Exchange Commission ("SEC") for the offering to
which this communication relates. An investor should read the base
shelf prospectus including the 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 a
prospectus supplement in respect of the offering filed in the
United States from CIBC World Markets Corp., 300 Madison Avenue,
New York, New York 10017 or request a copy by telephone at
212-667-7014. You may obtain a copy of the base shelf prospectus
and a prospectus supplement in respect of the offering filed in
Canada from CIBC World Markets Inc., by requesting a copy by fax
416-594-7242 or 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. Central
Fund's Class A Shares are qualified for inclusion in many North
American regulated accounts. Bullion holdings are stored on an
unencumbered, allocated, segregated and insured basis in the
treasury vaults of a major Canadian bank and are counted
semi-annually in the presence of Central Fund's auditors and bank
representatives. Class A Shares are quoted on the AMEX, symbol CEF
and the TSX, symbol 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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