Sprott Asset Management LP ("Sprott") today highlighted the
positive market reaction to Sprott's previously announced intention
to commence, together with Sprott Physical Gold Trust (NYSE:PHYS)
(TSX:PHY-U) and Sprott Physical Silver Trust (NYSE:PSLV)
(TSX:PHS-U) (together, the "Sprott Physical Trusts"), offers to
acquire all of the outstanding units of Central GoldTrust ("GTU")
(NYSEMKT:GTU) (TSX:GTU-U) for units of Sprott Physical Gold Trust
and all of the outstanding units of Silver Bullion Trust ("SBT")
(TSX:SBT-U) for units of Sprott Physical Silver Trust, in each case
on a net asset value ("NAV") to NAV exchange ratio basis (the
"Exchange Offers").
- Since Sprott announced its intended Exchange Offers on April
23, 2015, the discounts to NAV at which GTU and SBT are trading
have narrowed by 54% and 92%, respectively, unlocking approximately
US$46 million in unitholder value for GTU and SBT unitholders
"Since last week, when we announced our intention to offer GTU
and SBT unitholders an opportunity to move into the Sprott Physical
Trusts, the discounts at which GTU and SBT were trading have been
reduced dramatically," said John Wilson, Chief Executive Officer of
Sprott Asset Management. "We believe that the market's reaction to
our announcement demonstrates that, if successful, our offers are
likely to result in a meaningful reduction in the persistent NAV
discounts that have impacted GTU and SBT."
Sprott notes the relatively consistent spread between the Sprott
Physical Gold Trust and Sprott Physical Silver Trust's trading
prices versus GTU's and SBT's trading prices relative to their
NAVs. Sprott is confident that it is uniquely positioned to provide
unitholders of GTU and SBT with a meaningful choice as to how their
physical bullion is held and managed. Together, these factors led
to Sprott announcing its intention to make the Exchange Offers.
Sprott has been monitoring the situation involving GTU and SBT
and Polar Securities. Irrespective of the outcome of the GTU and
SBT unitholder meetings on May 1, 2015 and May 20, 2015,
respectively, Sprott intends to pursue the Exchange Offers. Sprott
is hopeful the trustees of GTU and SBT will fully consider the
Exchange Offers and act in a manner that allows GTU and SBT
unitholders to make an informed and meaningful choice.
"Investors in the Sprott Physical Trusts benefit from continuous
product marketing, promotion and engagement with investors, all of
which are made possible through highly competitive management fees.
We believe this ongoing commitment of capital and qualified
personnel contributes to the consistently superior trading of the
Sprott Physical Trusts compared to GTU and SBT," said James Fox,
President of Sprott Asset Management.
Sprott is a subsidiary of Sprott Inc., a publicly-listed company
with a strong balance sheet and deep expertise in precious metals
investments. Sprott has a globally recognized precious metals
franchise and a corporate history that dates back to 1981.
Written details of the Exchange Offers will be provided to GTU
and SBT unitholders and filed on www.sedar.com and, as applicable,
www.sec.gov in due course.
The table below was included in Sprott's press release issued on
April 23, 2015:
Average Monthly
Trading Premium/Discount to NAV(1) |
|
PHYS |
GTU |
Sprott
Advantage |
PSLV |
SBT |
Sprott
Advantage |
April 2015 (1-22) |
-0.38% |
-7.91% |
7.53% |
0.65% |
-10.08% |
10.73% |
March 2015 |
-0.16% |
-7.65% |
7.49% |
1.72% |
-8.64% |
10.36% |
February 2015 |
0.19% |
-5.57% |
5.76% |
3.22% |
-8.10% |
11.32% |
January 2015 |
-0.23% |
-5.84% |
5.61% |
1.85% |
-9.01% |
10.86% |
December 2015 |
-0.46% |
-8.67% |
8.21% |
0.61% |
-8.83% |
9.44% |
November 2014 |
-0.54% |
-10.49% |
9.95% |
3.82% |
-8.81% |
12.63% |
October 2014 |
-0.59% |
-8.00% |
7.41% |
4.17% |
-6.39% |
10.56% |
September 2014 |
-0.55% |
-6.68% |
6.13% |
4.13% |
-7.44% |
11.57% |
August 2014 |
-0.41% |
-4.78% |
4.37% |
3.88% |
-6.91% |
10.79% |
July 2014 |
-0.36% |
-3.92% |
3.56% |
3.35% |
-6.96% |
10.31% |
June 2014 |
-0.43% |
-3.42% |
2.99% |
2.54% |
-7.34% |
9.88% |
May 2014 |
-0.40% |
-3.46% |
3.06% |
2.82% |
-6.28% |
9.10% |
April 2014 |
-0.34% |
-5.44% |
5.10% |
1.90% |
-7.13% |
9.03% |
March 2014 |
-0.16% |
-4.87% |
4.71% |
3.09% |
-6.92% |
10.01% |
February 2014 |
-0.11% |
-3.94% |
3.83% |
3.68% |
-6.40% |
10.08% |
January 2014 |
-0.37% |
-5.24% |
4.87% |
1.57% |
-8.97% |
10.54% |
(1) Based on the
average daily closing prices on the NYSE Arca (PHYS and PSLV), the
NYSE MKT (GTU) and the Toronto Stock Exchange (SBT). |
Sprott intends to formally commence the Exchange Offers as soon
as practicable. Full details of each Exchange Offer, and its
related consent solicitation, will be set out in a takeover bid
circular and accompanying offer documents (collectively, the
"Exchange Offer Documents"), which Sprott expects to file with the
Canadian securities regulatory authorities. In connection with each
Exchange Offer, the applicable Sprott Physical Trust expects to
file with the U.S. Securities and Exchange Commission (the "SEC") a
registration statement on Form F-10 (each a "Registration
Statement"), which will contain a prospectus relating to the
applicable Exchange Offer (each a "Prospectus"), Sprott and Sprott
Physical Gold Trust will also file a tender offer statement on
Schedule TO (the "Schedule TO") with respect to the GTU Exchange
Offer. This news release is not a substitute for the Exchange Offer
Documents, the Prospectuses, the Registration Statements or the
Schedule TO. Such documents are not currently available, but once
available GTU AND SBT UNITHOLDERS AND OTHER INTERESTED PARTIES ARE
URGED TO READ THESE DOCUMENTS, ALL DOCUMENTS INCORPORATED BY
REFERENCE, ALL OTHER APPLICABLE DOCUMENTS AND ANY AMENDMENTS OR
SUPPLEMENTS TO ANY SUCH DOCUMENTS WHEN THEY BECOME AVAILABLE,
BECAUSE EACH WILL CONTAIN IMPORTANT INFORMATION ABOUT SPROTT, THE
SPROTT PHYSICAL TRUSTS, GTU, SBT AND THE EXCHANGE OFFERS. Materials
filed with the Canadian securities regulatory authorities will be
available electronically without charge at www.sedar.com. Materials
filed with the SEC will be available electronically without charge
at the SEC's website at www.sec.gov.
GTU and SBT unitholders who have questions regarding the Sprott
Exchange Offers are encouraged to call Kingsdale Shareholder
Services at 1-888-518-6805.
Important Notice
This news release does not constitute an offer to buy or the
solicitation of an offer to sell any of the securities of GTU, SBT,
Sprott Physical Gold Trust or Sprott Physical Silver Trust. The
securities registered pursuant to a Registration Statement are not
offered for sale in any jurisdiction in which such offer or sale is
not permitted.
Cautionary Statement Regarding Forward Looking
Information
This news release contains "forward-looking statements" and
"forward-looking information" (collectively, "forward-looking
information") within the meaning of applicable Canadian and United
States securities legislation. Forward-looking information includes
information that relates to, among other things, the intentions of
Sprott and the Sprott Physical Trusts and future financial and
operating performance and prospects, statements with respect to the
anticipated timing, mechanics, successful completion and settlement
of the Exchange Offers, the value of the units of Sprott Physical
Gold Trust and Sprott Physical Silver Trust received as
consideration under the Exchange Offers, reasons to accept the
Exchange Offers and the purposes of the Exchange Offers.
Forward-looking information is not, and cannot be, a guarantee of
future results or events. Forward-looking information is based on,
among other things, opinions, assumptions, estimates and analyses
that, while considered reasonable by us at the date the
forward-looking information is provided, are inherently subject to
significant risks, uncertainties, contingencies and other factors
that may cause actual results and events to be materially different
from those expressed or implied by the forward-looking information.
The material factors or assumptions that Sprott and the Sprott
Physical Trusts identified and applied in drawing conclusions or
making forecasts or projections set out in the forward-looking
information include, but are not limited to, the execution of
business and growth strategies, including the success of
investments and initiatives; no significant and continuing adverse
changes in general economic conditions or conditions in the
financial markets; the acquisition of all of the issued and
outstanding units of, or substantially all of the assets and
liabilities of, GTU and SBT; that all required regulatory approvals
for the Exchange Offers will be obtained and all other conditions
to completion of the Exchange Offers will be satisfied or
waived.
The risks, uncertainties, contingencies and other factors that
may cause actual results to differ materially from those expressed
or implied by the forward-looking information may include, but are
not limited to the risks discussed under the heading "Risk Factors"
in each of the Sprott Physical Trusts' most recent annual
information form and other documents filed with Canadian and U.S.
securities regulatory authorities. Should one or more risk,
uncertainty, contingency or other factor materialize or should any
factor or assumption prove incorrect, actual results could vary
materially from those expressed or implied in the forward-looking
information. Accordingly, the reader should not place undue
reliance on forward-looking information. Neither Sprott nor either
Sprott Physical Trust assumes any obligation to update or revise
any forward-looking information after the date of this news release
or to explain any material difference between subsequent actual
events and any forward-looking information, except as required by
applicable law.
Information Concerning GTU and SBT
Except as otherwise expressly indicated herein, the information
concerning GTU and SBT contained in this news release has been
taken from and is based solely upon GTU's and SBT's public
disclosure on file with the relevant securities regulatory
authorities. Neither GTU nor SBT has reviewed this document or
confirmed the accuracy and completeness of the information in
respect of GTU or SBT contained in this news release. Although
neither Sprott nor the Sprott Physical Trusts have any knowledge
that would indicate that any information or statements contained in
this news release concerning GTU or SBT taken from, or based upon,
such public disclosure contain any untrue statement of a material
fact or omit to state a material fact that is required to be stated
or that is necessary to make a statement not misleading in light of
the circumstances in which it was made, none of Sprott, either
Physical Trust or any of their respective trustees, directors or
officers has verified, nor do they assume any responsibility for,
the accuracy or completeness of such information or statements or
for any failure by GTU or SBT to disclose events or facts which may
have occurred or which may affect the significance or accuracy of
any such information or statements but which are unknown to Sprott
and the Sprott Physical Trusts. Sprott and the Sprott Physical
Trusts have no means of verifying the accuracy or completeness of
any of the information contained herein that is derived from GTU's
and SBT's publicly available documents or records or whether there
has been any failure by GTU or SBT to disclose events that may have
occurred or may affect the significance or accuracy of any
information.
About Sprott Asset Management
Sprott Asset Management LP is the investment manager to the
Sprott Physical Trusts. Important information about each of the
Sprott Physical Trusts, including its investment objectives and
strategies, applicable management fees, and expenses, is contained
in the current annual information form for each of the Sprott
Physical Trusts, which can be found on its website, in the U.S. on
www.sec.gov and in Canada on www.sedar.com. Commissions, management
fees, or other charges and expenses may be associated with
investing in the Sprott Physical Trusts. Investment funds are not
guaranteed, their values change frequently and past performance may
not be repeated.
To learn more about Sprott Physical Gold Trust or Sprott
Physical Silver Trust, please visit sprottphysicalbullion.com.
CONTACT: For more information:
Glen Williams
Director of Communications
Sprott Group
Direct: 416-943-4394 or Cell: 647-823-3971
gwilliams@sprott.com
or
Ian Robertson
Kingsdale Shareholder Services
Vice President, Communications
Direct: 416-867-2333 or Cell: 647-621-2646
irobertson@kingsdaleshareholder.com