Central Fund Closes U.S.$128,520,000 Class A Share Issue
September 26 2008 - 8:33AM
Marketwired
Central Fund of Canada Limited (TSX: CEF.A)(TSX: CEF.U)(AMEX: CEF)
("Central Fund") of Calgary, Alberta is pleased to announce that it
has completed the sale of 11,900,000 Class A Shares of Central Fund
at a price of U.S.$10.80 to CIBC World Markets Inc. (the
"Underwriter"), raising total gross proceeds of U.S.$128,520,000.
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.$10.80 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. The
additional capital raised by the issue is expected to reduce the
annual expense ratio in favour of the shareholders of Central
Fund.
The new total of issued and outstanding Class A Shares of
Central Fund is 152,467,713. The investment holdings of Central
Fund are now represented by approximately 970,665 fine ounces of
gold, 48,527,624 ounces of silver and U.S. $46,278,838 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 second 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. Before you invest,
you should read the base shelf prospectus including any prospectus
supplement and any other documents the Company 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 the Company and this offering. You may obtain a copy of the
base shelf prospectus and the second prospectus supplement in
respect of the offering 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 the second prospectus supplement 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 the Company'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, 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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