Central Fund of Canada Limited Enters Into Underwriting Agreement
August 06 2009 - 9:37AM
Marketwired
Central Fund of Canada Limited (TSX: CEF.A)(TSX: CEF.U)(NYSE Amex:
CEF) ("Central Fund") of Calgary, Alberta announced today that it
has entered into an underwriting agreement with CIBC, 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, 11,040,000 Class A
Shares of Central Fund. The offering will be made under a fifth and
final prospectus supplement to Central Fund's U.S.$750,000,000 base
shelf prospectus dated March 31, 2008.
The purchase price of U.S.$11.90 per Class A Share is expected
to result in gross proceeds of approximately U.S.$131,000,000.
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 August 13, 2009.
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 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, 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, segregated and insured
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 LLC, 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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