GoldTrust Unitholders are Reminded to Vote
Against Polar's Self-Serving Proposal
TORONTO, April 21, 2015 /CNW/ - Central GoldTrust
("GoldTrust") (symbol: TSX – GTU.UN (C$) and GTU.U (US$); NYSE MKT
– GTU (US$)) urges its Unitholders not to be fooled by the public
announcement by Polar Securities Inc ("Polar") that, if Unitholders
approve the adoption of Polar's proposed physical bullion
redemption option, Polar will commit to delay redeeming the Units
held by its offshore North Pole Capital Master Fund for the
remainder of 2015.
Bruce Heagle, Chairman of the
Special Committee of Independent Trustees of GoldTrust, commented:
"Your Board of Trustees fails to see how a delay in Polar's
redemption of GoldTrust Units somehow makes up for the harm their
proposals would cause to the interests of our long-term
Unitholders. Such a delay does not level the playing field
for the over 99% of Unitholders who could not utilize their
proposed physical redemption option, and who would be inheriting
the increased cost and potential tax liability that come with
it."
Mr. Heagle continued, "Polar now recognizes that GoldTrust
Unitholders are rightly concerned about Polar's dissident
proposals. Polar's empty promise to delay redeeming the Units held
by its Cayman Islands-based fund
is nothing more than an attempt to appear magnanimous to other
Unitholders. We believe our Unitholders will see this announcement
by Polar for what it is, a desperate, manipulative attempt to gain
favour with Unitholders who are understandably wary of Polar and
the negative consequences of their proposals."
Your Trustees re-iterate their view that Polar's proposals are
not in the best interests of GoldTrust Unitholders. Your Trustees
note that:
- Polar's proposed physical redemption option would only be
available to less than 1% of GoldTrust's 18,000+ Unitholders;
- Polar's proposal could result in a tax bill for certain U.S.
Unitholders who have not sold or redeemed their Units;
- Polar's proposal would significantly increase GoldTrust's
ongoing expenses, which would be borne by long-term Unitholders and
erode GoldTrust's Net Asset Value (NAV) over time;
- Polar's offer to delay redeeming its Units does nothing to
address these fundamental concerns;
- Polar's nominees are not independent, have no plan, and lack
the experience to oversee GoldTrust; and
- ISS, a leading proxy advisory firm, has recommended voting
AGAINST Polar's redemption proposal, AGAINST Polar's proposed
trustee nominees and FOR GoldTrust's incumbent Trustees.
The Board of Trustees recommends that Unitholders REJECT
Polar's proposals and vote FOR all of GoldTrust's Board
nominees.
Your vote is important, no matter how many Units you own, and
the deadline for voting is fast-approaching. If you have not
yet voted your WHITE proxy, please do so today by
REJECTING Polar's self-serving proposals, voting AGAINST its
redemption resolution, DISREGARDING any proxy materials received
from Polar and voting FOR the Trustee nominees of GoldTrust. We
urge you to vote the WHITE proxy only, as your Trustees
recommend. Even if you have already voted using the Polar
proxy, you can change your vote by submitting a WHITE
GoldTrust proxy now, which will revoke any previously submitted
proxy and be counted at the Meeting.
Proxies must be received not later than 11:00 a.m. (Toronto time) on Wednesday, April 29, 2015. Due to the
limited time available, we recommend voting by internet, telephone
or fax today or not later than 24 hours before the deadline. For
ease of voting visit our website www.gold-trust.com or
www.goldtrust.ca.
If you require assistance in casting your vote, or require
replacement proxy materials, please call GoldTrust's proxy
solicitation agent, D.F. King
Canada, toll-free at 1-800-251-7519 or call collect
1-201-806-7301.
About Central GoldTrust
Central GoldTrust (established
on April 28, 2003) is a passive,
self-governing, single purpose trust, which invests primarily in
long-term holdings of gold bullion and does not speculate in gold
prices. At April 21, 2015, the Units
were 99.0% invested in unencumbered, allocated and physically
segregated gold bullion. Units may be purchased or sold on the
Toronto Stock Exchange and NYSE MKT.
Forward Looking Statements
Statements contained in
this release that are not historical facts are forward-looking
statements that involve risks and uncertainties, including any
impact of Polar's proposals. GoldTrust'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 GoldTrust's filings with the Canadian securities
regulatory authorities and the SEC.
SOURCE Central GoldTrust